It should not have been a surprise to see today’s weakness as it was quite clear that the market was very extended. All major averages finished in the red and not a major sector finished in the green. This indicates broad based selling however it took place on lighter volume which is the type of action we like to see when a market does some backing and filling.

Unfortunately, we could consolidate quite a bit without damaging the technical picture and while our cash levels may be high, it doesn’t eliminate the pain in the areas that will still take some whacks. The key to being a successful market participant is to always be watching and waiting in order to pick your spots.

At Shark HQ, we will be watching this pull back very carefully. We feel very strongly that many did not participate in the recent move and any weakness may be pounced on fairly quickly. We have a very long shopping list of stocks that will be set up and ripe for buying with a tad more consolidation.

If you have adhered to our guidance and have raised your cash levels, the next step will be to not be too anticipatory on putting capital back to work. Just as Mr. Market can go higher than you think, he can also go lower. Preserve the capital and be patient. We don’t ever buy a stock simply because it has gone lower; we buy a stock because it is ready to go higher.

Have a good evening.