Shorter-term momentum traders are taking their profits right now, and longer-term investors are sitting on cash waiting for a better buying opportunity. The problem is, to get a better buying opportunity, prices have to drop lower.

I have never been able to come up with any clear indicators. There is no mechanical means to identify them.

If you bought the stock because you liked the fundamentals, you'll want to stick with it.

A lot of the mutual fund managers, especially those that are in the blue chips, are just biding their time, trying to pick a point to stuff the ledger with some of the better-name blue chips.

The higher short interest goes, the more eventual buyers there will be, ... It represents buying potential, because the shorts can't book profits without buying. These short-covering rallies take about one-and-a-half trading sessions, but they can't be seen as an overly bullish sign.

One of the contributing factors for the gains is the fact that gasoline futures came off the highs of the day. Any sign that the wallet won't be hit so deeply by energy prices is a cause to push stocks higher.

There is probably a little bit of reluctance to make big commitments going into the employment report.

We saw an adjustment in the 'P' of the 'P-E' ratio.

It should be a positive for the market. The decline was more than expected. It probably has to do with the drop in energy prices that we've seen. To come in down 0.7 is less inflationary pressure.