Summary

Roughly a month ago -- February 21st, to be exact -- I issued a "Red Alert" on the stock market. Lots of water over the proverbial dam since then, to wit: An immediate, large sell-off, followed by a "breakout" that wasn't, followed more recently by something that looks to me like a serious, genuine breakdown. Thus, I am taking this opportunity to review what has taken place since 2/21, as well as to reaffirm an outlook that remains at "Red Alert" status.

I will also paraphrase a recommendation contained in the 2/21 piece: If you are holding substandard cash reserves to weather the continuation of the secular bear market, do something about it! And I would not tarry, either.

http://www.gillespieresearch.com/cgi-bin/s/article/id=504