How can you minimize your risk to individual stocks? One strategy is to own ETFs that own a broad group of stocks instead of banking your future on just one individual company. In this regard, ETFs can be successfully substituted in the place of individual stocks from three angles: 1) Market size, 2) Investing style and 3) Industry sector.

Perma-bulls and perma-bears are attention-getters, not money-makers. Avoid their views like plagues. I do. Those views might make for juicy headlines, but they are not typically substantiated by rigorous in analysis. Importantly, their views rarely prove accurate or value-added. (quote from D. Kass)

Stocks were in a correction in the second quarter. A head and shoulders top on the S&P 500 was confirmed on June 30th, which indicates further selling ahead. The first of the month trading indicator already confirmed a bear market in early June. A moving average cross will add additional confirmation by July 2nd.

U.S. stocks had a big sell off on Tuesday after June consumer confidence fell sharply. Weakness in the eurozone is still rattling the markets as well. The liklihood of a double dip recession continues to increase and stocks are about to give a bear market trading signal.

U.S markets are in sell off mode once again as problems in Greece resurface. Economic numbers remain unimpressive with new home sales falling off a cliff and durable goods down 1.1% in May. The technical picture for stocks is deteriorating and it looks like a bear market trading signal will be given next week.

Two negative months in a row is a bear confirmation. The indicator in May was very negative. It remains to be seen if June will confirm it.

I envision 2010 to be a fairly tame affair, with the major indices up a decent but unspectacular 5% to 10% as of April. I see the year as one of stability and consolidation, both in the equity markets as well as the underlying economy. That may not sound exciting. But sound investors who pick stocks wisely can still make a very handsome return.

If trading would be easy it would be called winning, not trading

The January 19, 2010 to February 8, 2010 decline should be the first of many steps to the down side. Following the end of the rally from the February 8 lows, we expect the market to drop precipitously throughout 2010.

I am awaiting the beginning stages of a long and compelling decline. Declines over the past nine months have been shallow and short-lived. A solid close below S&P 1,040 should confirm that a top is in place. The first leg of the decline should draw the S&P to 900 or below within the next 2 - 4 months.