Market internals in US markets started to weaken 2 weeks ago. This accelerated dramatically last week. In fact, my indicator is now only one bad day away from an outright sell signal. Nasdaq & SPX haven't been told yet, but I think a correction is already underway in US markets. I doubt that it will be severe or prolonged, but I think it's time to lighten up on US stocks for now.

So what about Canadian markets? They have stalled a bit and they are likely to correct along with US markets, but hopefully not as much. Hope is not a trading strategy, but Canadian markets might outperform during a correction – all depends on commodities. A mixed picture there – gold appears weak, but industrial metals like copper & palladium look good, with platinum & silver somewhere in between. Oil looks weak short term, but strong intermediate term.

I'm not panic selling, but I have lightened up a little, particularly my gold stocks. Although I still believe there will be another leg up fairly soon, I think it's a good time to take a little off the table and raise some cash.