As subscribers of the newsletters are aware, my expectation (although made with only 65% certainty) of the "DJIA climbing to 10,800 withing a few weeks" discussed in the January newsletter for the most part materialized, with the DJIA reaching an intraday high of 10,763 on January 19th. 

Ever since then, the market has sold off hard and now rests at a somewhat important (although not yet critical) level.

This weekend, I will be sending newsletter subscribers a report on where I think the market will head next week. 

I will also provide what I think the DJIA must do next week in order to prevent what could be continued sell-off.

Note that the intermediate-term trend in the DJIA has NOT reversed, yet. But if certain thiings do not happen next week, the chances of a reversal will increase.

FYI, I still have not bought anything in 2010. I only sold KFT (which I picked up in December for a short-term trade, which is why I never mentioned it).

I remain in about 75% cash. The 25% I have in the market is invested in 3 stocks I have held long-term and do not plan to sell unless I see a high chance of a market collapse (so as to buy them back at a lower cost basis). I have discussed these three stocks several times in the newsletter. I will let you know which ones they are as well as the percentage invested in the report this weekend.

Incidentally, I have been somewhat surpirsed how well each of these stocks have held up, given the recent market sell-off. However, that by no means serves as any type of buy signal. It is only a good thing for those who already hold these securities.

Some stocks have sold off much harder than others, positioning them as attractively valued over a short-term time frame. So I will also provide some possibilities of short-term trades for securities previously mentioned, but only if I feel they represent relatively good trades, and only if the technicals look good. Those who are not good at short-term trading might want to be safe and stay away.

Much of the decision whether to make any trades will depend where the market heads next week. That is precisely why I plan to couple this information.

Printing Version More On US Markets