Those that practice what they preach are usually pretty happy whenever they see that everything they have been warning about is being practiced by so many. Raising cash during this troublesome market has proven to be very intelligent and despite the 20% from the top in November by the Nasdaq this market still has not rewarded trend following short-sellers like it has in the past. This is making it a very difficult market for anyone who has a time frame over one day or for someone who does not actively invest and trades off the monthly charts instead.

My personal favorite system/methodology is the CANSLIM system and those that have been following it have remained in cash avoiding the many investing pitfalls that many will, sadly, have to learn the hard way on their own. Me, lol, I have seen this before. Never in such quality stocks. But heck if we are turning into a global world then a global economy is what we are probably in store for. So don’t get too depressed, this too shall pass. The grass is greener on the other side of the fence until it isn’t. Right now, I have to continue to press hard that those that love to invest in the market to score the big hits in a nice relaxed amount of time continue to wait for better moments. The best bottoms are built with a rising VIX, a rising put/call, and a falling stock market on lower volume. Not like the big volume we are seeing now. No, it rarely is that simple. This is more complex than we know. I just pray that this is not a Japan 1989 with the Nasdaq in 2000. Hopefully, it is not, but still there is plenty of room to grow.

Be careful out there, keep that cash high, and remember do not go back in until we are given clear “buy” or “sell” signals. For now, everything is muddy. Keep out of the water. Crocodiles and sharks flourish in this environment. And I am not talking about the good sharks either. The great white man-killers of all great promise that cost too much commission and too little in invested capital. Pray for a better market. It will come.

Last 5 posts by Joshua Hayes

• Following Through on Friday's Gains Stocks Stage Another Rally on Strong Volume - June 2nd, 2009
• Small Cap and IBD Indexes Lag the Major Indexes with Volume Higher Across the Board - May 29th, 2009
• Are Items That Fill Up Your House too Expensive? Then Rent Them at Aarons Inc. - May 27th, 2009
• Finally We Have The IBD Indexes Leading The Way As Stocks Rally On Heavier Trade - May 27th, 2009
• Ending in Mixed Fashion Stocks Fail to Close Out With Gains Seen Earlier in the Session; IBD Indexes Take the Lead - May 20th, 2009