Been offline for a bit dealing with more important stuff, so the next few days will be a bit of a catch up on many fronts.

Got to start with the market. Obviously my call of a breakout a couple of weeks ago couldn't have been wrong. True, I was cautious and advised such, but definitely appears to have been a "fake out" rather than a break out above previous levels.

So where does that leave us? Well, we're still above the (approximate) 12,000 level on the Dow that had been a ceiling since 2000. So long as we're still up here, I'm willing to give the market the benefit of the doubt, though I continue to be lightly invested, looking for some better opportunities in the next few months. Failing to hold that level, as Kevin Tuttle pointed out some months back, would be scary.

However, I would note that the S&P 500 has never really accellerated and broken out as much as the Dow, on a long-term basis. The Nasdaq, of course, has never matched it's 2000 highs, not even close.

All in all, it's a mixed bag, and I'm back to being extremely cautious on the market overall. Technicals are inconclusive, valuations are expensive by any historical measure, volume id definitely favoring the down days and the psychology is increasingly negative. I am back to making lists of stocks I'd like to buy and the prices that I think are justified by their earnings but am taking no action. Have not made any new buys, but a few more days like today could easily get me there.

In the meantime, I note that tech is holding up better than a lot of other stuff. It is less leveraged to the dollar and to debt than many other sectors, and as noted above, tech has not gained as much as other sectors in recent years. I've always been a cautious tech investors, but am slowly warming to some of these stocks again, for the first time in many years.

-btc