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Good morning all. We're not seeing much change in our opinion of the overall landscape of the markets today. We're staying pat that this market wants to move lower for the time being which gives you a potentially good opportunity to pick up some index put options on strength like today with the idea of exiting them as the markets move lower. Fading against the NDX when it retraces daily moves to the upside will likely be your best shot at making some short-term profits off the QQQ's until we find a base we can live with.

With that being said, we're on the hunt for some smaller stocks that may provide good entry at discounted levels since the market is providing us with an opportunity to do so. This type of environment can be a great time for traders and investors to position themselves for the long-term.

Here's some news from one Company we like quite a bit for the longer-term.

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Good Monday all. We've got the first quarter behind us now and I hope it was as productive for you as it was for us. However, we've got three more to go to make a good year so we're not going to rest on our laurels anytime soon. I've got a strong suspicion the 2^nd quarter is going to prove a little tougher to navigate things but we'll get ‘er done. I can hear one of my old coaches in my ear right now saying, "What have you done for me lately?!"

With last week's minor selloff across the major indexes, bullish fund managers and investors are making an effort to kick off Q2 in similar fashion as we started the Year... from a position of strength. As I type, the major indexes are making a pretty darn good effort to erase last week's losses but I for one wouldn't get too excited just yet. If the recent development of a trend reversal proves correct, this will only prove to be a selling opportunity rather than a buying opportunity.

I think it's important to keep in mind though that this market currently has the technicals in place to go either way. If we do manage to take out last week's high on the NDX, last week's pullback will likely be a launching pad for the market to grind higher. If we continue to see lower highs being made on a daily basis for the rest of the week, then our call for a needed breather is likely going to prove correct.

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As suspected, our three month long target on the NDX of 2785 appears to, at least for now, be proving that the major indexes may have topped out... albeit for the time being. This again proves that speculation and technicals have been the primary driver of this market's move for months now. If you've been following along, you'll know we've been very bullish about this market for months up until the NDX hit 2785 on Tuesday of this week.

We continue to focus on the NDX because the index has been the leader of the two year rally that started back in the Spring of '09. Today, news pundits are blaming the market weakness on jobs data but that couldn't be farther from the truth in my opinion. If you're a fan of Elliot Waves and Fibonacci expansion levels, then you'll know we've been very adamant that the NDX has been gunning for that 2785 level as a logical profit point for quite some time. Now that we're there, it becomes a self-fulfilling prophecy that may lend itself to further downside in the coming weeks ahead.

It may very well be time to reverse your thinking if you continue to plan on shaving short-term profits by playing the major index ETF options. Our trading plan all along has been to buy the weakness and sell into the strength but if this market continues to prove that we're in for a trend reversal, the opposite mentality now would be the most prudent way to position yourself for continued profits.

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Here we are folks. The NDX finally reached our target of 2785 yesterday virtually on the number. Now what? Most of you know we've been calling this market spot on for many months now with a very bullish bias while providing excellent entries that have proved very profitable for trading the index options. However, for the first time in as many months, we're now taking a wait and see approach. There's a good possibility the major indexes have finally extended themselves to the point where the easy money has been made. Our initial target of 2785 for the NDX was a logical long term profit objective that we set for the NDX a few months back and sure enough we're there now.

Why is this so important? While many Wall Street Pros have been on the other side of the fence screaming sell for months, we've been about as right about the broader markets as anyone could possibly be. We've never hinted toward a sell side bias until now. For the record, we're not suggesting this market is definitely headed lower now but we are suggesting that based on our technical analysis, it may be time for the markets to take a much needed break.

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Good Monday all. Well, Wall Street 0 - SmallCap Network 1. I'm sure many of you read and heard about all of the commentary last week from other professional sources out there suggesting this market was in selloff mode. As a matter of fact, there have been plenty of casualties in recent months who have stepped up and screamed sell in an effort to garner their two minutes of fame. Wrong again Naysayers.

Headlines included economic data pointing to a continued slowing in the housing markets among other excuses, have been a feeble attempt to get this market to turn on its head. I wouldn't pay a whole lot of attention to the numbers coming from our Government as I really don't believe those numbers are driving this market.

On any given day, the markets can prove even the most intelligent economist wrong. Why? Because the markets trade well in advance of lagging economic data and this market right now has a mind all of its own. Don't make the mistake many traders and investors make by trying to rationalize why the market is doing what it's doing because you will likely go nuts.