Editor's Note:

I'm starting to feel like a broken record here. Little has changed for us. The market continues to drift lower and extended its losses to four weeks in a row. Yet losses for the major indices have been mild. The bounce on Friday could have been short covering ahead of the long, holiday weekend.

Economic data is mixed but concerns remain about a slow down in the U.S. economy. Meanwhile the U.S. markets remain captive to developments in Europe and the EU's struggles with Greece and the rest of the PIIGS countries and their debt worries.

The end of QE2 is fast approaching and will be here in five weeks. The end of this stimulus "should" be already baked into the market but then when the market should do something the market tends to behave poorly. Summer has unofficially started with the Memorial Day weekend. That means the stock market is facing the summer doldrums. June has not had a very good history of stock market gains in recent years.

I remain hesitant to launch new bullish positions. We want to take a wait-and-see approach. Let the market come to you instead of chasing stocks. If you do open positions I would strongly consider you keep your position size small to limit your exposure. I am not adding any new trades tonight but we are adding two new candidates to the watch list.