How was everyone's Wednesday? Good, I hope, though given how muted today's action was, I think it's safe to say most traders aren't quite sure where things are going from here. I do have some thoughts on the matter though, as usual, but first, I have to get back on the soapbox and rant a little. Don't worry - I'll keep it brief... but it's gotta be done. Enough Already If you've been even just remotely involved in the market since February, then you'll know Ben Bernanke's quantitative-easing chatter has been nothing less than maddening for investors. (I know May's when the big fireworks started, but if you dig deep, the merry-go-round actually started to spin in February.) Either way, over the past several weeks he's hinted a few times that the Fed's QE efforts will end soon, only to follow that up a few days later with talk that he'll prolong the easing for quite some time. If my count is correct, he's changed (or the media's changed) direction no less than six times since the mania started in May. Investors have responded for better or worse all six times. My message to Mr. Bernanke is this: Mr. Bernanke, While it's not your job to telegraph the Fed's long-term plans to the stock market, there's no benefit in changing your message and tone every few days. It's driving traders crazy, and chipping away at your credibility. Each time you switch gears, the market feels duped, making your next message less meaningful. We're now to the point where practically nobody trusts what you're saying, not because you're a shady person, but because we've been yanked around enough already and we don't want to get fooled again. Sometimes, the best thing you can say is nothing. Fair enough? I just wanted to get that off my chest today, since for some reason the media is painting a picture that today's semiannual pow-wow between the Fed Chairman and the House financial services committee has offered some sort of great clarity that hasn't been offered yet. Folks, despite headlines like "Bernanke: Markets beginning to understand our message", there's absolutely no more certainty about when the Fed's going to start tapering than there was a few weeks ago. It matters, because traders now seem to be thinking there's something different today that lifts all the fog surrounding the issue. But, nothing's changed. Here's his ultimate, bottom line message for the financial services committee: "With unemployment still high and declining only gradually, and with inflation running below the Committee's longer-run objective, a highly accommodative monetary policy will remain appropriate for the foreseeable future." That's hardly anything new, and leaves the door wide open to, well, anything. If you're planting your flag on what seems like some sort of solid foundation because of his testimony today, know that we could get right back on the merry-go-round tomorrow. Just be ready for anything... as usual. Like Bernanke also said, "I emphasize that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course." Translation: We're adapting the plan to new information every day. Speaking of Ben Bernanke, I found this tidbit pretty amazing. When asked why he offered fairly specific guidance regarding the Fed's plans, he responded by saying that not doing so would have "risked increased buildup of leverage or excessively risky positions in the market." He than added how "Markets are beginning to understand our message and the volatility has obviously moderated." Avoiding the buildup of leverage and moderated volatility? Are you kidding me? He's yet to offer any actual, specific, consistent guidance (that wasn't reversed a few days later), and volatility and speculation are through the roof! What market has he been watching? I wouldn't have thought this, or even cared, a few weeks ago, but now I'm starting to agree with many of the expert observers on the matter... Bernanke's got to go. He had a golden opportunity to become a hero this year, and it just seems like he's done everything possible to make sure he's replaced when it comes time for a new appointee. OK, off my soapbox, though I've got one more Bernanke-related thing to mention. I thought something John Monroe over at the SmallCap Network Elite Opportunity penned on the whole tapering issue was quite pithy: Those of you who have been SCN EO subscribers for a while now, might remember a few months back when I mentioned it would be no surprise to us when Bernanke does decide to back off the asset purchases campaign that he ends up pegging the ten year yield around 2%, as another tool to ensure money continues to remain on the cheap. I think that's what he was alluding to today. If that was the case, it would be a major positive shoe to drop for the markets and depending on where the indexes are trading if and when that happens, we would be in for a significant move higher across all of the major indexes. Just remember that and put it in the back of your mind because it would actually be significant market moving news. That's just a small sample of the commentary and insights SmallCap Network Elite Opportunity members have been getting. If you're not a subscriber, you're missing out on some great stuff. You're also missing out on some great stock picks. You can treat yourself to two weeks of both, for free, by taking them up on the free trial offer. Give 'em a test drive today. Here's how. Or, copy and paste the following link in your browser: http://www.smallcapnetwork.com/?vmpd_ckstr[click_track]=SCN+Newsletter&vmpd_ckstr_redirect=/pages/SCNEO/v1/ Taking Care of Business I'm not going to spend a lot of time talking about the market today because, frankly, there's not much point. Most everything I've talked to you about over the past few days still applies.... struggling at a major ceiling, already overbought, indecision, summertime lull, blah blah blah. I'd really rather just show you an updated chart, point out what's changed (if anything), and then move on to a more pressing matter. So, we'll do that. The nearby chart is what it is. For the third day in a row the S&P 500 brushed the 1684 area - our new technical ceiling - and then pulled back. It's the intraday pullbacks that are most alarming. It implies there's just not a lot of conviction or follow-through. Yeah, sometimes the market needs a few days to gear up for a breakout move. Sometimes though, the bulls fight a losing battle. All I know is, given the current situation, the longer the market leaves itself on the bubble, the more likely it the bubble will get popped and let the index implode. Investors aren't exactly in a risk-taking mood right now. If we get a close under Tuesday's close of 1676.26, I suspect that will start the avalanche. Only a close above 1684 would get us looking at a bigger upside move, but like I said, I think that's the low-odds outcome here. Now, on to more pressing matters. Remember when I told you on Monday we'd leave the CryoLife (CRY) trade "on" for a while longer, know there was some risk in doing so? Well, we've officially had enough. CRY did end up pulling back on Tuesday, but bounced pretty firmly today. That's technically bullish, but I've just got a nagging feeling there's not much gas left in the tank. In fact, though today's move was sizeable, the buying volume is fading. That's the most critical clue in the world as far as I'm concerned. Now, I could be wrong; CryoLife shares may end up flying to the moon. But, I'm not interested in you or me giving up the 16% gain we've garnered on the stock in just a little over a week. That's the name of the game ....managing your risk versus your reward. If you got in on our advice, we're pulling the plug on it now and walking away with a decent win. For what it's worth, I would be willing to step into CryoLife again after a decent pullback and a healthy restart of the uptrend. Also for what it's worth, though you just made 16% on our latest trading idea, that kind of return pales in comparison to some of the big (and more frequent) winners the guys over at the SmallCap Network Elite Opportunity have been doling out. You can see for yourself how they do it. Check it out. Or, copy and paste the following link in your browser: http://www.smallcapnetwork.com/?vmpd_ckstr[click_track]=SCN+Newsletter&vmpd_ckstr_redirect=/pages/SCNEO/v1/