Editor's Note:

The market's December sprint higher has finally stalled. Stocks need a chance to catch their breath. You know the drill. Three steps higher, two steps back, repeat. After two weeks of gains and new two-year highs it's not surprising to see some profit taking.

Thursday's session could be interesting. There is a lot of economic data hitting the wires. We'll see the housing starts, building permits, the U.S. current account balance, the Philadelphia Federal Reserve economic survey, and the weekly initial jobless claims. Meanwhile stocks look a little tired. We've been hoping for a correction to offer another entry point to load up on bullish positions. The newsletter already has several bullish candidates with buy-the-dip triggers. I'm not adding any new candidates tonight.

- James