Weekly Update 04-12-2010:

Last week we had mentioned that the previous week the market ended about the same area that it had started.  That was true of last week as well until Friday when the market surged an hour or so before closing.  Even though it is extremely overbought it seems intent on trying to “kiss” the levels of 1200 on the S&P500 and 11000 on the Dow.  Though in doing so in such an overbought condition it could result in the “kiss of death” for the markets.  We will see if the “Monday Morning Manipulators” will show up to attempt this “push”.  Also, this week is option expiration week so it will likely bring in more volatility than usual.  Tomorrow is a “key reversal” date that has a high probability of at least a short term reversal on the day of or day after.  Furthermore, we are approaching the seasonal time of the year when the “head winds” seem to be so difficult for stocks that the saying has developed…”go away in May”.  So this week has the potential for putting in the long awaited “top” that we have been prepared for now for quite some time.  We will keep a close watch and let you know if our position needs to change.  Until then we remain in the SELL position with the active portion of the portfolios.  Yours for Safe Sailing in Bull and Bear Markets.