Greetings!

A quick update to let you all know I am still in cash. Looking back, my decision to go to cash roughly 5 months ago has turned out to be the correct decision for position traders. It has allowed me to completely sidestep the recent melt-down. Moving to the sidelines has protected both my financial capital and my mental capital.

There are 3 important thoughts I want to share with you:

1. Uranium: I managed to get out 2 days before the Fukushima news hit the wires. Lesson: Spend more time improving your technical analysis skills. On my website I provide as much insight and educational material as I can in order to help you make better trading decisions. My goal is to help you become an independent thinker and a better trader.

2. Cash: Cash is a position. Take a look at your portfolio value. If it has decreased in value since March consider monitoring or charting your own equity curve in order to get more clues on when to increase or decrease exposure to the markets.

3. Bear Market: We are oversold and a vicious bounce could happen anytime. Nonetheless, recent price action tells me that odds are extremely high we are witnessing the beginning of a new bear market cycle. The best way to handle this situation is to stay in cash and mentally prepare for a bear market.

The goal is not to give back profits and to keep the gains of the previous bull market.

Here are 3 links that cover the topics mentioned above:

1. U.TO - Uranium Participation chart. Don't trade your opinions. Instead, monitor the weekly moving average 30:

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2791469&cmd=show[s161386408]&disp=P

2. Cash vs. being fully invested. Charting your own equity curve provides invaluable clues:

Disclaimer: You trade at your own risk. This is no investment advice. Consult your financial advisor when you buy or sell stocks.