GLOBAL STOCKS AND COMMODITIES DROP AS BONDS RALLY -- NYSE INDEX BREAKS 50-DAY AVERAGE -- EFA ISHARES FALL BELOW 200-DAY LINE

SERIOUS PROFIT-TAKING ... Global stocks and commodities are experiencing heavy profit-taking today. Major stock indexes in the U.S. are down more than 2%. Biggest losses are being seen in economically-sensitive groups like energy, materials. transports, and technology. Semiconductors are down more than 4% and are helping lead the Nasdaq lower. The groups holding up the best are defensive consumer staples, healthcare, and utilities. The NYSE Composite Index is the first major U.S. index to fall below its 50-day moving average. Foreign stocks are falling much harder, especially in Europe. EAFE ishares have fallen below their 200-day average. With stocks and commodities on the defensive, bonds are rallying. Given how far the stock market has rallied, and the fact that seasonal trends turn less positive during May, a more defensive market stance appears warranted at this point. [No charts are included with this message due to technical problems].