| Global stock indices took a breather for the most part last week. There were moments of aggressive selling that made it look as though we were witnessing the beginning of the end of the long running bull.
It felt tired... and toppy...
However, over the last decade or so, we've seen this scenario play out multiple times. Stocks pull back aggressively for 1 reason or another and bears try to come out of their extended hibernations once again... only to have price resume its relentless trek higher.
I don't know if that's going to happen this time... Fundamentalists say valuations don't look stretched, and I agree for the most part. However, rising interest rates kill bull markets.
It's their job.
And so with TNX having broken out of an extended range to the upside (see below), there's every reason to tread lightly on the long side for the moment.
Am I making a sell call? Absolutely not... I'm long cured of making big, fancy market direction calls with some fairly prodigious losses.
And those kinds of calls are not at all helpful to you guys anyway.
What I am saying is we could certainly be at an inflection point, so your whereas your normal risk alert status should be at yellow... it should now be tilting toward red... Not into red mind you... just in that direction.
A light Fuschia maybe.
What does that mean as a practical matter?
Stay the course... stay with your process. But buy even fewer shares... with maybe even tighter stops. | 
