I'm Prepared and Patient

The bears are finally getting their payday. Frankly, it is about time. Stocks took a solid pounding today creating some interesting setups both on the short and long side of the market. I'm currently sitting in a lot of cash and, from the looks of things, I'm going to need it.

Like all major market moves, this one is one of the more interesting in the past year. Why is this? For just about every indicator I follow that shows we've entered into a more lengthy correction phase, there is another corollary sign that a major snapback reversal is in the cards. As a result, the level of risk one must assume when putting their capital in play right here and right now is greatly increased as well as the potential reward.

For now I'll leave this game to the professionals who play with other people's hard-earned money. My goal, as I've said before, is to 1) preserve my capital, and 2) take advantage of any opportunities that I see. What this means is that my game plan really hasn't changed, although the tone of the market certainly has.

As I always do in these types of situations, I get my buy list ready and I stay prepared and patient. It wasn't long ago that I said better buying opportunities were ahead. Now our job is to figure out if we're at the best buying opportunity possible. In my opinion, that wasn't today. See you tomorrow!