Heading to Cash Hill

The warning signs were mounting:

• Jim Cramer of CNBC was telling his listeners to go all in the market, because the market was going up and you didn't want to miss out --> Bearish sign
• The market has been going straight up since March 9, 2009 --> A tired market
• The news of Goldman Sachs being investigated for fraud (they were shorting the very securities, they were selling as grade AAA securities) --> A really scary sign

The bears have been out there for a long time and we all know even a broken clock tells the correct time twice a day (something the younger folks may not realize since they grew up in the digital clock days). Nevertheless, no good news came come out the Goldman Sachs story and I fear that the worse is yet to come. Remember, Goldman Sachs is the same company that was run by Treasury Secretary Hank Paulsen. There is no telling what will be found when the SEC of the United States and the Government of Germany (yes, they announced they are launching their investigation too) will find out when the covers are lifted. My father always taught me, what you do in the dark of the night, will eventually come to the light. Even on Jerry Springer you hear the phrase, "That's not what you said last night!"

I fear investors to stay invested in this market will suffer a loss while telling Cramer, "That's not what you said last night!".

What I find interesting this morning, are all the upgrades and downgrades coming from analyst on the day AFTER options expiry. I also found the $GS announcement interesting since it came the morning of options expiry. I always get irritated when news comes so close to options expiry. There are 30 days in most months and they always seem to choose to time their news around that 3rd Friday before the 3rd Saturday of each month. And then I learn that Goldman Sachs knew of the news months ago and failed to disclose the news the the shareholders. What other information have they withheld? I guess we shall find out soon. While Goldman Sachs may be able to buy off officials in the SEC, will they be able to do the same with the German government?

Nothing good can come of this situation, this is why I have decided to head to Cash Hill with the ole 401k. It's not about being older and subjecting myself to less risk, its about not riding the market down when there is a high probability that we are headed lower. In the year 2000, I was a member of the church of buy and hold. I suffered painful losses then. I vowed never again to just sit and ride. Now, you have an account that you are dollar cost averaging in, I can make a case for you to just ride it out; however, I would still consider moving a portion of your portfolio to cash, for still continue to dollar cost average into the declining market and pick up your shares on the cheap!