an tSionna {01.10.11}

First charts of the new year.  It wouldn't surprise me if stocks do nothing for a couple of weeks or even correct slightly.  First there is some natural churning in the beginning of the year as portfolios are adjusted and gains that may have been deferred for tax reasons are taken. 2nd, that's an awfully big move we made in December and that, to my way of thinking, has to be consolidated at some point. 

Finally if we look for what market action would cause the most pain then I think a market that does nothing for awhile would fit the bill.  Seems to be to many people talking rather loud about how stocks are going to correct big or go up big.

*Long ETFs related to the S&P 500 in client accounts.

P.S.  Look for us to finish up our series on whether stocks are cheap soon!