As as newer trader I’ve been in cash pretty much since last November. Finally it’s being paid off. As you know I sent you those gap fill S&P charts a while back, something just did not feel good about the market. I think this pullback could have been seen coming. Every indicator screamed overbought at the end of last year and even the weekly charts were rolling over.

The only problem right now is where do you step in. What 2009 learned me is to be brave enough to take a stab when risk/reward is in your favor and cut your losses immediately when your max-risk has been hit. I’ve been too passive in 2009 resulting in pretty much missing out the complete rally. I will play this pullback when opportunity presents itself, but I refuse to lift the first stone.

Sir, the FlexFolio did over 17% last year and never stepped into the mess buying falling safes. Could it have done better? Sure, but it is not my style to be first. Let other do the heavy lifting. 2009 was a rare event.