What does this all mean? 

Markets tend to have over exaggerated moves when it comes to the effect news has on it and right now we have all kinds of news converging at the same time. The market has taken notice of this and reacted to the downside. lets review some events happening

1. Recent Presidential Election; Bearish on Stocks

2. Fiscal Cliff Talks all over the news. ( they have beaten the dead horse and are now pushing it over the cliff.

3. Capital Gains Tax Increase: Come Jan. 1, the Bush Era tax break that put the minimum tax on capital gains taxes at 0 percent will be gone. Instead, there will be a minimum 10 percent federal tax on long-term gains, with the cap raised from 15 percent to 20 percent. (Bearish)

4. Effects of Hurricane Sandy ( Loss of revenues in the largest business district. Will be seen in retail sales, Airlines, Transportation and many other areas. (Bearish) 

5. Greece..Greece..Greece.. Been there done that, But hell lets do it again.

6. Israel- Gaza Conflict (The new kid in town)

Over the last month these have all come to a head in a very short time frame. It is not shocking to see the markets pullback. On the bullish side I am  seeing some of best technical indicators lining up for a oversold bounce.

The fact is I can't predict what news will be in the headlines tomorrow. Good or bad the markets are not going away. What I must do is pick my battles, or in trading terms..Trade in the best environment that is right for my methodology. I would cut back on size by at least 50% and be very selective in your trades. That will not be hard to do cause You will see only the best set ups brought to your attention. I have great watch list for this week and most of the set ups from last week are still set up and still in there entry zones. here is an update on last week's set ups featuring the tradingview.com platform 

http://www.youtube.com/watch?v=AMS_WFbMsM8 (watch it full screen)

still working on new set ups will get it out ASAP got home early this morning from the convention and got a late start. Will be back on Schedule starting tomorrow

Thanks for Understanding

DTRS