Stocks are consolidating recent gains. It was good to see the market hold up last week in spite of some negative numbers on new homes and consumer confidence. This is a healthy development.

What I don’t want to see is the market shoot it’s wad and go through the roof right now. It needs to take it slow and steady. Building the base. Gently undulating up and down, up and down, with ever higher peaks and lower valleys. Don’t bring Mother Market to a climax just yet. Savor the crescendo in studly fashion. It’s much more enjoyable. Get the picture?

The dollar’s bounce last week contributed to a the start of a rotation out of commodity-related stocks, including the ags. I’m not very bullish on the ags at this point. Even though the longer term macro story is still in place, there will be some profit taking here by many due to the big run up. I’ve gotten out of a large part of my positions, but holding and not selling the low cost basis shares in MOS and POT, much to the chagrin of the tax man.

Natural resource and energy is overextended. Financials are still trying to establish a bottom. It’s probably better for bulls to look at stocks showing early strength like technology, with healthcare and retail as secondary.

I like (GLW: 20.77 -1.42%) and (IBM: 122.12 -0.32%) here.

(JNJ: 70.64 -0.62%) looks like it could breakout from a multi-year consolidation.

Big Wednesday coming up with Fed rate decision and GDP numbers. Since I’m not one to roll the dice, I’m keeping the stops tight on my long positions, standing ready to go short via ultra inverse ETFs if we get a major crack.

Disclaimer: Investing involves risk (in case you hadn’t noticed). Don’t trade off of this info. Do your due dilly first before commiting money.