Editor's Note:

It was a quiet, peaceful end to what has been a rocky 2010. The stock market consolidated sideways as investors just wait for the clock to run out on the calendar.

We are expecting a market correction in mid to late January. That's when we want to start adding positions to the newsletter, not beforehand. As I said in the watch list tonight, I looked at hundreds of stocks. There were plenty of bullish candidates but nothing offering us an entry point today. Many need to see a healthy dip before we want to start adding them to the watch list.

I am urging patience. In another two weeks earnings season will begin and that could kick off the correction. If you're looking for a trade tonight I would suggest some sort of hedge on your bullish positions. You could buy puts on the S&P 500, puts on mid caps, or puts on the small caps. The ETFs I would look at the SPY (large cap), MDY (midcaps), or the IWM (small caps). If you really want to add some excitement then check out the double-long or double short ETFs and buy the appropriate call or put as a hedge against your bullish LEAP positions. They even have triple leveraged ETFs if you can't sleep at night.