Greetings and welcome to this week’s Top Down Review.

I have called this week’s program Warning Flags as signs continue to increase that this market is getting closer to rolling over.  However the main question remains is this just another move to the bottom of the trading range or will it be different this time?  Join me on my journey thru the markets from a Top Down Perspective.  We have been in this trading range for months but the warning flags are there to suggest that we may soon break down to the downside.  That said, we have been here before and bounced.  All though I am feeling increasingly bearish, I remember that some of my best weeks have occurred as we bounced off support, such as what may happen Monday or Tuesday.

I believe we should anticipate that we maintain the trading range but be very prepared to act if we break out to the down or upside.  As we have moved down off the tops I have reduced positions, raised cash and bought PUTS and Contra ETFs.  Now as we approach the bottom of the range, the risk increases on my positions and I will take action accordingly but not by what I think will happen but based upon what the market action tells me.

Please check your EPS dates as this is a big week again for Earnings.

Trade Safe my Friends.  No one ever has gone broke taking profits.  However, my biggest profits have come by letting my best positions run.  Unfortunately  2007-2008 demonstrated that at some point you need to take profits even on your best performing long term positions.   Delaying trades for tax purposes often has a way of coming back to haunt you.

Jeffrey

For those interested in my joint HGSI and Person’s User Group, please see the presentation and if you meet the requirements or have interest in purchasing the package please email me. (hgsidoc@gmail.com)