The majority of the profit taking we are witnessing is concentrated in stocks that had the biggest gains. If you have been paying close attention, the biggest hits in the market were concentrated among energy, commodities, and the metals.

A lot of this profit taking comes from hedge funds that are desperately trying to show their investors significant gains over the market averages in order to justify their high fees .

This being said, nothing has changed fundamentally to convince us that the energy crisis is over, or that the commodity boom is coming to an end.

Finally, news about inflation is beginning to hit the newswires. I have been telling you that inflation was a bigger problem than what investors were being told, and low and behold we were not only right, but among the first and the few to report about it.

The most over sold sector right now looks like oil. We are literally a few weeks away from the start of hurricane season, and predictions from NOAA say that this year will be another very active season.

Gold prices took a big hit, but after the huge run up in prices this is to be expected. The reality is, there were too many speculators buying the Midas metal. As inflation jitters creep back into the market, gold will more than likely resume its run.

Sorry for the lack of journal posts on Friday. I was traveling with my son to a baseball tournament, we got back this morning at 2 am.

We really do not need to micro-manage the markets however. The best strategy most of the time is letting the market come to you.