For the time being Dow 13,000 and NASDAQ 3,000 are providing important points of resistance (ceilings) to stocks as investors turn their attention from the potential RETURN of their portfolios to the RISK they are assuming. At this point in time, we see this pullback as a shallow pause to refresh. We can point to several different risks around the globe as the catalyst for this pullback, including the possibility of an economic slowdown in China, the potential for military conflagration between Israel and Iran, continued problems with Greek debt, rising gas prices and the near-certain in the ratcheting-up of the political rhetoric as we close in on our Presidential Elections in November.
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