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Since the last entry the market has continued to rise. The wall of worry is certainly a lot of talk but in reality sharp declines in commodity prices and continued weakness in interest rates are doing wonders for equity prices. And they will continue to do that but a rally in gold, oil, copper, et al is due and will come as the market flirts with 5 year highs. That's the perfect sort of conundrum the market poses: new highs that give way to a little weakness as anti-equity securities gain in price. Enough to keep the wall of worry intact.

Two recent books that I read that are worth sharing. The Little Book That Beats The Market presents interesting ideas about investing that I found interesting and will continue to analyze. In addition, the book describes the wisdom of an allocation process that is closely related to the way my firm manages money so that was gratifying! Reminiscences of a Stock Operator tells the story of Jesse Livermore, one of the most famous speculators in Wall Street history. The book is loaded with exceptional ideas about trading along with Wall Street history. It's a great read and may help your market performance as well.

Let's pay careful attention to market leaders and see how they react to this so far small pullback. That should answer lots of questions.