Rules are Rules

Although I fully intended to plunge back into the market today, my first rule was violated: the market was not able to continue its uptrend for a fourth day. As I write this, the DJIA is down 86 points. One of my gurus, Phil Erlanger, puts it succinctly today:

"The S&P 100 index remains in a cycle of uptrend/pullback rotation. A downtrend has yet to materialize this month, despite the negative seasonality. This fighting off of the seasonal tendencies speaks well for the potential of Q4 for investors, but the seasonal period of negative tendency is not yet passed. The next positive period of seasonality does not get underway until the third week of October. That said it has been constructive for the market that it has held things together."

So I am staying on the sidelines for another few days it seems.