I haven’t had any change in my position. I am staying on the side lines not because of, but comfortably alongside Warren Buffet, for whom for only the second time in the last 55 years, sees nothing worthy to invest in. The other time was 1999. There are 12 stocks that are driving the SP 500. Those stocks are responsible for 70% of the gain since the April lows. The other 488 stocks are responsible for 30% of the gain. So if you were not in the crazy 12, it wasn’t much of a market. One of the groups I mentioned last week *might* be a group that could attract some buying if the market were to rotate to other sectors was banking.

Thus far that hasn’t happened. That is not positive either. I would also take a short position if I could find a clean sell signal. I don’t have any of those either though. So I wait. 

I discussed last week that I thought Crude Oil and stocks highly correlated to Crude, could do better. Those stocks Connoco Philiips and Devon, have tacked on a little bit, but I do believe there is more upside here. 

Thanks,

Joe

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