Dow up 350 points and patience

Fortunately, the mutual fund year end effect was in play. As many of my fellow traders have told me, better to be lucky than smart. Holding all positions no trades today.

The ideal scenario is for a down day tomorrow for no more than 1/2 of today's gains on lower volume than today. We're back to playing the calendar tendency so if this occurs, look for anywhere from one to three potential trades near the close. Most likely its a 3rd buy on RIMM, a 2nd buy on FXI, and a probe buy of a new position.

We won't know until near the close tomorrow but you have to like today's action as it is the first time in five weeks there's been two consecutive up days in the major averages.

The thing to watch out for is allowing the longer term charts to influence trading in the here and now. While I'm thinking about how I want to be allocated six months from now, remember to make money today. Having such a big cash position is a blessing on the down days, but it is a sin when you have these rare 3% up days in the averages. Always work on improving your entries, even if it means an extra 25 or 50 shares. Even that small a difference can add up to a higher profit over one year's time.