http://www.youtube.com/watch?v=1MWN_duZfIs

The indices are flat-to-slightly green this morning, as the overall gist of the action since Tuesday afternoon has been that of consolidation. While it would not be an absolute guarantee of better entry points, I have patiently waited for sound technical setups on the long side to develop before I increased exposure in my portfolio. If you have been following my work here or inside 12631, my focus since April has been on preserving capital rather than the more aggressive stance I took in appreciating capital during the first quarter of this year. My hope is that this is the home stretch in patience required before the market flashes more signs of a sustained uptrend. Memories are made out of being in rhythm with the market, as we have in 2012. Going forward, though, we know that hope is not an investment strategy. Thus, letting this consolidation play out is best.

As I noted on my video recap last evening, we are judging the “how” of this consolidation. Bulls want to see mild, quiet indecision, while bears are looking for selling and volatility to accelerate.