Reversal Of Fortune

The bulls sure had a nice rally ahead of Ben. But, as we've seen before, the bears wasted little time taking back control. For the week, all of the major market averages fell an average of -1.5% producing the fourth straight month of declines.

Some of this week's lessons:

• The buy ahead of Ben and sell after trade continues to work like a charm

• Overbought conditions remain profit-taking/short-selling opportunities

• Breakouts from technical patterns everyone is looking at (like the recent flag) tend to fail and reverse. Take note of how we managed to breakout of the S&P 500 flag and then it failed miserably

• Don't be greedy in this market. Set modest profit targets and book them when you have them. Just look at today's wipeout in shares of China Medical (CMED) following this week's flashback

If you love getting more disappointing news about the economy, you're going to love next week. We have the ISM, Beige Book, more home sales data, and of course, the big bad jobs report on Friday.

Have a wonderful weekend. I'll see you in March!