The market giveth and the market taketh. Today’s selling certainly puts the NASDAQ in danger of entering into a new downtrend. Volume on the NASDAQ rose on the day while the NYSE fell against Monday’s inflated volume figures. VIX rose, but could not reach a 16 handle. Our holdings are not indicating whole a lot of issues and it does help to be avoiding NASDAQ names. For now, this is a simple pullback after a tremendous run off the February lows.

We do have seasonality trends to deal with. Most notably “sell in May and go away.” Seasonality is not what we trade and while you can over time profit from seasonality it is not as optimal as our strategy. Stick with cutting losers and riding winners is a great start. Stick with us and we’ll guide you through this market.

The US Dollar index had an incredible run off the lows. Led by a reverse in EURUSD it appears the Dollar may bounce. UUP is a decent way to play the bounce.

No one knows where this market is going to head next, but we do know where it has been. Stick to price.