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Bernanke and Company Fail to Inspire, Volume Slips

|Includes: AAPL, AMZN, ATHR, Baidu, Inc. (BIDU), BKNG, CMG, CREE, CRUS, DECK, GMCR, GOOG, ISRG, ISSI, MA, NFLX, PCP, PNRA, V

The morning session started off with a pop after Tuesday's sell off as volume began light.  As more sovereign debt fears grew volume began to pick up steam as sellers took over.  As we crept up onto the Federal Reserve rate decision stocks picked up support, but volume fell off a cliff as shorts covered into the rate decision.  But, when the rate decision and "language" was released stocks failed to show a vigorous buying spree as the central bank held rates at record lows.  Volume too didn't creep higher and the support that did show up was very weak and lacked the necessary power to inspire the market.

The big question is are we going to correct and how much.  Last night's commentary I made mention to the market had changed its character as heavy volume came into the close.  Today, it could have shaken off Tuesday's heavy volume at the close, but the market failed to get the necessary power to convince me Tuesday was a one day fluke.  We could very well make a turn on Thursday, but for now we still have plenty of weakness and the market having piled on distribution keeping me on the cautious side.

There a few leaders that have held up and continue to act strong.  The only issue at this point is there may not be enough of these leaders to keep this market propped up.  Since February 5th we have had a terrific uptrend without much of a pullback and we are overdue for some sort of consolidation period.  How long or deep is anyone's guess, but you should take the market stock by stock.  Any weakness should be sold and we need to make sure our losses are cut short.

Taking a loss is an admission you are wrong and for most it is very difficult to take.  However, taking a loss, should be viewed as an insurance policy on your portfolio.  No matter how hard it is to adjust to cutting your losses it must be down to make sure you have longevity in the market.  No question asked, cut your losses.

Always remain positive and disciplined!