2014 First Q Earnings

So far, earning season has been disappointing. Result from banks are mixed. MS/BAC are good. C is terriable. GS/JPM are flat. There are some selling pressue in banking stocks, but nothing un-usual. 

The problem is concentrated in retail sector. Entire sector is under serious selling pressue.

GE/COF/UPS/INTC reported disappointing earning also. Which gives warning signs to US stocks. 

US treasury is turning around which indicates soft path ahead. 

So it is clear that it is time to raise some cash at the moment and be cautious.  However, shorting this market using inverse ETFs is fool's game when FED is still pumping $40B in Jan. 

The key word is still "Protect" not "Short" in first Q.

This year is also mid term election yr. It usually provide a deeper correction. My best guess is that "Sell in May" means a lot more this yr than ever. 

Overall, the strategy hasn't really changed but extreme caution and protection are must needed if we still want to be in this market (in the market is still not changed).