Market is Vulnerable! 9-14

Last week the market ended up following a rebound over the last three days. Given the bearish mood from the prior week and all of the bad news last week, the fact that the market made any gain is surprising. The decline in oil prices is encouraging, but slower global growth is raising concerns. We remain cautious over the direction of the market. This week will be volatile and Lehman's announced bankruptcy will add great fear to the market which could take the markets down sharply. We are not actively looking to reinvest the cash that we currently hold and will try to hold the current laggards to avoid the selling frenzy. Sitting on cash may be a good strategy right now until market direction becomes more clear.