The market is struggling so why have I not jumped on the bandwagon of those who are now talking smack? It’s more fun to listen and to be honest a few weeks ago I really got tired of the ignorance that was flowing all around the markets and financial media. By the way, if there is a bandwagon to jump on and discuss the risks facing stocks, I was one of the drivers when it wasn’t so cool. Just a few weeks ago, bears like me were being ridiculed for exaggerating risks and ignoring important things like M&A speculative premiums, buybacks, record highs, weak dollar, tame inflation, etc. etc.

On days like today, I move over and let the backseat drivers turn the wheel. Instead, I listen and think. The time for action in positioning portfolios is when it isn’t so rewarding. Selling on a day like today is reactive….NOT PROACTIVE. Effective portfolio management - the kind that helps you make money and avoid losing it - may cost you a few bps on big up days, but on big down days when the herd is reacting, most of your work should be done already.

The database at HEDGEfolios is free to use for the first month after a registration that takes less than five minutes and does not require that you provide a credit card upfront. If you check it out, you’ll see that I have had DOWN signals on approximately 55% of the 4000 stocks and ETFs that I cover during most of the time since last November. The HEDGEfolios Timing Indicator has been bearish since April 30th. I avoid reacting on day’s like today by being proactive last week and just listening, watching, learning and researching now so I can prepare for next week.

And don’t think that I feel the bull run is over because no matter how bad today can get, if it doesn’t close at the lows or recovers a portion of its poor opening, some investors will actually be encouraged by that. Others will be happy if it just doesn’t implode. The bullish tone that was abundant last week at Dow 14,000 isn’t gone forever - it’s just being drowned out by ignorant people talking smack. When this calms down and there’s a chance for the hypesters to push for a rally, it will happen. That’s when I might talk some real trash of my own.