Concerning..

9am EST The futures have been a little concerning this morning. The dollar has been relatively strong this morning and it looks like we are in for a pullback. We are at a point in the market cycle that the "forced selling" we saw a couple of months ago is essentially over. There will be opportunistic buyers out there keeping a floor under the market. We are not going back to the recent lows in March, but we will be heading lower.

Investors Business Daily (a must read) will probably call today a "distribution day". I see continued strength in the dollar throughout the day. Remember, we are at the end of the week in the Foreign Exchange market. The Europeans go home in a couple of hours and New York will be left to carry the market through the close. Anyone familiar with Foreign Exchange will tell you that Friday afternoons are not a time for any significant positions in the market. So short of a rather large weakening in the dollar this morning, the equity markets should end lower.

I am continuing to raise cash at this point. I am waiting for about a 50% retracement of the recent move in the dollar. Once the dollar has strengthened a little and the equity market has pulled back a little, I will be more aggressive with my long positions. Until next time, stay low risk..