While I, too, think any correction will likely be for buying, I'm becoming more cautious now that we're in January, worried about a repeat of January 2010. Recall what happened last year; I was cautious coming into the new year while the “crowd” was waxing bullishly. And just to make me look foolish, the S&P 500 rallied 3.2% from 2009’s year end to a short-term peak on January 19 of 1150.23. Accordingly, the cry went out: “So goes the first week of the new year, so goes the month, and so goes the year.” However, from that January peak, the SPX fell more than 9% into its February 5 low of 1044.50.
Jeff Saut is a rarity among Wall Street strategists. He actually gets bullish when prices go down and bearish when prices go up. He was correctly bullish until now. He has turned cautious in the near term. From Minyanville: