Surprise Reversal in the Indices....

Just when it looked as if we would close at record highs, short-term traders and investors become spooked and take some profits off the table. I can't really blame them. For decades, many have believed in the "sell in May" idiom. This has led to a self-fulfilling prophecy involving scores of traders and investors unloading their positions and twiddling their thumbs until late fall. I suppose that today, investors felt the jitters and couldn't keep their mouse off of the sell button. It's all good. Out of all the new stocks that I bought today, I was only stopped out of one, TRT for an 8% loss. And thats really about it. TWI, RSCR and several others were only down a small amount. In fact, many stocks in the 'folio are still looking good. UNCA, VCC, VSEC, CCIX, MEDX and several others were still able to close in positive territory. Until we have more information, we can't conclude todays action as a complete reversal. Instead, we should take it as note of caution and be prepared. Last May I wasn't prepared and I suffered some nasty losses. This time, I am playing it more cautious.