I am urging traders to be cautious here. The markets are reacting to news from Europe. This is obviously a very fluid situation. This morning stocks were hitting new 52-week highs on expectations the EU members had come to some sort of aid package for Greece. Yet just a few hours later stocks are reversing on comments from EU Central Bank President Trichet.
The U.S. markets are very overbought without any significant correction or consolidation off their February lows. Traders are going to be nervous about protecting their profits. At the same time we still have four more days left for fund managers to try and chase performance before the first quarter ends.
I am not suggesting new candidates at the moment. It's time to watch and see if there is any follow through on today's bearish reversal pattern in the market indices and so many widely traded stocks.