Still cautious..

7:30am EST While the futures are higher this morning, I am a little skeptical of the early morning rally. I think the institutional money will take this opportunity to take a little off the table. I will probably be doing the same. I am keeping the positions I have right now and tightening up the stops I have in place. We have had a tremendous run in the last 6 weeks or so. I believe 100% that we will not retest the lows. However, for the health of the market, we need to have a good pullback. I believe the market ends the year significantly higher, but we need to have a little pain in between. In this case, the summer is the best time for a little pain.

Today's trade is one I have been watching for a little while. I am going to pull the trigger on (MO) today. I wanted to see the stock get back to the recent highs and it has. It is now above the 200 day moving average and the 200 day MA is flattening. Yesterday's rise was on above average volume and it actually found support at the 200 day in the morning. I believe this stock goes higher from here. I will buy about half of my position here and let it run a little. THen I will look for a pullback to purchase some more. With a strong dividend and strong cash flow, the downside is relatively limited. Until next time, stay low risk..