Moving forward, investors will likely look to corporate profits and economic reports for guidance moving forward. So far this earnings season, as a whole, we feel the reports have been quite disappointing. Keep in mind, we have seen stocks that were already expensive by historical P/E standards get more expensive (as a result of many companies in corporate America aggressively lowering estimates). Therefore, we feel it's quite important that the earnings reports on tap for the week ahead deliver positive news in order to provide the markets with lasting direction after earnings season ends. If this does not happen, we feel that there is little reason for investors to commit capital to stocks at current levels with visibility of most companies so unclear. As far as economic reports go, Friday's employment report will be the most anticipated report for the week. We have seen the number of layoffs slow in the last few weeks, however, the fact remains that many companies are still making announcements that they plan to reduce their head counts. As such, Friday's employment fugues should shed some further light on the current state of the US economy. In summery, we continue to feel it's best to remain cautious. We still do not feel that the risk/reward ratio in the markets is favorable with P/E ratios near all time highs. As such, we'll more than likely be looking for short side plays moving forward for our model portfolio.