Caution!!

A Bear Market isn't here yet and I am not saying its going to happen.
 Just be cautious and keep your eyes open!

Good morning folks, 
In this weeks video I expressed concern of having all the resistance overhead on several of the indexes and that this week could give us a better idea of which way the markets are heading. I was hoping we would get a follow through day but the markets struggled all day yesterday. 

Numbers out of Germany were not very encouraging in terms of global growth. Earnings season starts this week with Alcoa kicking it off on Wednesday after the close. Gold and Silver had an interesting move yesterday which left me scratching my head and GTAT was another shocker that took Wall Street by surprise. 

If earnings come in weak like SODA this morning the markets are likely going to feel more pressure to the downside. My concern is that we are near some important technical levels and if we take them out fear could take over creating a snowball effect that develops into a self fulfilling prophecy for the major correction that many of the talking heads like Marc Faber have been calling for. 

I am not in the camp that we are going to see a 30 or 40 percent decline in the markets but I could see 10 to 15 percent correction. 

Many of the economic indicators for the U.S. have been relatively good like employment numbers, ISM and GDP. Oil coming down is like a tax cut putting more money in peoples pockets heading into the holiday season. However it may not be good enough if the rest of the world continues to struggle.

Until we have confirmation of trend, the markets are likely to remain choppy which makes day trading a bit more challenging. So with that in mind, I plan to reduce position sizing and keep tight stops. If a trade doesn't react the way I think it should after entry I will not hesitate to bail on the trade.

Stocks on my Radar 

FEYE pr bottom bounce, ISR pr active premarket careful it can be a pop and flopper, REXX possible snap back play, PGNX pr looking for the 5 dolla round number roll,  XNPT like the daily, BTX seeking alpha article after the close yesterday decent daily, LOCO nice action yesterday, BCRX CMRX TKMR the Ebola plays could get more juice if there are more cases announced, BCLI pr small float, CLNE pr possible snap back play, KNDI looking for possible continuation

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Today's Markets:
In Asia, Japan -0.7% to 15784. Hong Kong +0.5% to 23423. China closed. India -1.1% to 26272.
In Europe, at midday, London -0.6%. Paris -1%. Frankfurt -0.7%.
Futures at 6:20: Dow -0.4%. S&P -0.4%. Nasdaq -0.4%. Crude -0.5% to $89.92. Gold flat at $1207.60.
Ten-year Treasury Yield flat at 2.42%

Today's economic calendar:
7:45 ICSC Retail Store Sales
8:30 Gallup US ECI
8:55 Redbook Chain Store Sales
10:00 Job Openings and Labor Turnover Survey
1:00 PM Results of $27B, 3-Year Note Auction
3:00 PM Consumer Credit

Notable earnings after today's close: LNDC, MG, YUM

Best of Success!