In the above video, I discuss my 5 top reasons I'm cautions on the markets along with 3 more issues to consider.  My top 5 are:

1. Abnormally large amount of results on my scans
2. Markets have rallied into new highs – the Fed has interrupted recent pullback
3. Abnormally high volume on many of my stocks
4. No new stocks breaking out that fit my chart profile
5. Market timing remains mixed

Bottom line: now is the time to be on the sidelines or very small positions long positions and consider looking for some short trades. The more charts I look at the more I think things could get rough at the start of 2014. I remember the markets got very bullish in early January 2013 and never looked back. I’m not saying 2014 is going to be a mirror reversal of last year, but I think it’ll start out a little choppy. I also wouldn’t be surprised if we continue with a bullish bias for the rest of the trading days of December but I just don’t think there are a lot of reward/risk opportunities out there on the long side.