By last week, U.S. stocks had become oversold as sentiment measures retreated from the high levels that had accompanied the strong first quarter. I'd recommended taking profits and raising cash to above-normal levels. For those inclined to short the market, that tactic does not currently offer sufficient odds for success.
I currently find few values among well-established companies. Instead, there are several deep-value, high-dividend yield, and small-capitalization stocks that offer an attractive return/risk tradeoff for those with patience.
Overall, this is not a propitious time for taking large positions. Maintaining above-normal cash levels--but not shorting--still makes sense.
S & P 500: 1370