A break below 72.10 would be ominous.



Should the buyers show up this week, alternative energy is likely to see some action in anticipation of President Obama's inauguration. ENER held up well on Friday, and looks ready to head higher.



Several of the miners still look good.




As of now, I am taking the following approach:

- Holding short positions in specific financial, retail, real estate, and homebuilder stocks. These stocks could squeeze higher, but I plan to hold through the fluctuations in expectation that prices will eventually move lower than the current level. Short holdings include JPM, WFC, STI, LEN, MTH, RSH, JWN, IYR, GE, UPS, KEY, BBBY, SKT, STC, and MET.
- Holding long positions in selected commodity and energy stocks, with stops in place below key support levels. I will give these positions less room than the shorts. Positions include RIO, FCX, ENER, FSLR, NOV, CLR, YGE, ZMH, CZZ, WFR, AMAT, EWZ, and MT.
- Since most of these positions are not large, I remain heavy in cash, watching to see the market commit to one direction or the other.