"Hey Mav, do you still have the number to that truck driving school?" -- Goose

It was just a few weeks ago that we were discussing that the market was breaking support, the world was going to run out of oil, and the flattening yield curve is going to throw us into a recession. As I was running through my numbers this evening, I noticed that the Nasdaq is only 15 points away from a 52-week high, you no longer have to take out a second mortgage on your house to fill up your SUV, and the Transports have hit all time high.  That's right -- all time highs. Don't you just love a choppy market.

Once again the broader averages were up fairly strong. In fact, they were up about 1% across the board, even with GM down almost 5%. The markets are due for at least a pause if not a pullback. I'm not sure when, but the markets will let us know.

Builders FirstSource

One of the companies that has not participated in the last rally has been Builders FirstSource (BLDR). As the markets are challenging multi-month highs, BLDR is challenging multi-month lows. Notice today that the company tried to rally, but sellers pushed the price down towards even. If tomorrow's action takes out Thursday's lows, it will verify that sellers are not done probing the lows.

This market is due for some correction, but I'm not sure when or how deep. Let the market dictate your action don't try to guess when this will occur. Use your stops and protect your principle and profits.

Tom Incorvia is a swing trader with 18 years of experience in the financial markets.  E-mail him at tincorvia@gmail.com.