Morning update

In times of uncertainty, I always think it's prudent to step back, take a breather, raise some cash, and start fresh.  I am currently out of all positions.  On my watch list:

1. Gold - seems to be starting its parabolic move, which signals the beginning of the end.  I am watching carefully and will look to short if it turns.

2.  Treasuries - This risk free market seems to be trending nicely with gold, making a parabolic move higher.  I'm going to let it go for now, and look to short via TBT on positive economic news or a sustained bounce in equities.

3.  Financials - yet to find a bottom.  I am cautiously building longs - need to be careful to differentiate an oversold bounce with a sustained bottoming pattern and reversal of risk sentiment.

What worries me most (click for detail):

Very little technical support below these levels, and although the market feels oversold, we're flat YTD.  I'm looking at 123 as possible support, and below that, possibly 119. Sometimes it's mentally exhausting to be a contrarian, but as I always say: "take care of the downside, and the upside will take care of itself." ADP just came out, beating expectations by 4k.  Slightly less pessimism pre mkt. Short term oversold bounce is very possible, but I think 130 is going to be tough to break.