Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

I want to erase yesterday...

This might sound crazy.  I want another sell-off.  I think that institutional investors want it too.  So, wait for another pullback to put the remainder of your cash to work.  I think that the euro solvency issues create some headlines that will deliver enough volatility for you to capitalize on here in the short-term.  Put some limit orders well below the market.  I would refer to my list of stocks from a few posts ago.  If you are watching the S&P 500 as a guide then I would wait until it hit 1125.  A move like that would create another level of panic but not enough to ruin the technical positives of the market.

If the market persists with negativity over the next week and therefore holding back a rebound in stocks, then we might have some serious issues to contend with.  I would use this market volatility to add stocks but be very aware that it may have to be put back into cash if the markets do not recover by the end of the month.

Here is a great quote from Carter Worth (my favorite market technician) ..."Crashes come when too many stocks are "Vulnerable-Extended."  Crashes come from complacency.  Crashes come from consensus thinking.  Crashes come from hubris. The second thing to be said is that "unidentified, unknown, inexplicable, and mysterious" computers- computer programs- computer programmers- computer operators- are never the reason a market crashes."

This is exactly what I was saying a couple of weeks ago when I called for a correction.  Now lets hope that this correction is a huge buying opportunity and not something more treacherous.

Good Luck!

Terry Monahan