The stock market is attempting to attract some buyers after breaking below the 11,000 mark over the past few sessions. Don't get too anxious just yet.

I have adopted a rather callous philosophy toward the markets, and that philosophy is very simple. "Every stock is bad unless it goes up." As I have said before, there is a time to be in the market, and a time to be out". If quality stocks are going to correct, I would rather have a big chunk of my portfolio in cash.

Of course, if I am expecting a decline of 5, 10, or even 20%, I like to be invested in the Rydex Tempest 500 fund (RYTPX). At this stage of the game, I am not expecting an intermediate decline of more than 5-10%. By mid-year, I will become very defensive as I believe the decline through year-end could be much more severe.