Tough call here in the ST

I've been distracted from the markets lately due to a home purchase and condo sale my wife and I are conducting. I spent most of my life growing up in a little suburb called Woodbridge just north of Toronto and shortly after meeting my wife I moved in with her here in Toronto where I have been for the past 4 years. I love it here. We are located in a quiet little pocket just outside where all the hustle and bustle is. We have the best of both worlds here - all the restaurants, theaters, bars, clubs ect are close by and for peace and relaxation there's a huge park even closer by. I'm going to really miss living here. I am moving back to Woodbridge for a few reasons. First of all, my wife is expecting our first child this July and as a result, a 1 bedroom condo is no longer going to cut it. To raise a family it's ideal to own a home and a home in downtown Toronto is quite simply unaffordable for us. Unlike with most of the developed world real estate prices in Canada didn't crash. You pretty much need about $800,000 just to buy a very small detached home close to where we are now which would probably be 30+ years old. Woodridge is expensive as well but not nearly as much as Toronto. Other reasons we have decided to move back to Woodbridge is because it's a good, safe neighborhood for growing up kids and my parents and siblings will be close which I know will come in handy for babysitting. You don't see many kids living here in downtown Toronto....it's either young singles/couples or old people who live here. I want my kid to be in an environment where there are lots of other kids he/she can make friends with close by and a suburb environment is ideal for this. I don't want my kid to grow up isolated. I'm already finding out what it means to sacrifice for your kids even before I have them! But, my parents did it for me and for me not to do the same would be quite selfish. But I'd be lying if I said I won't miss this place dearly. I was born to be a "city slicker".

Anyhow, enough about me and on to the market. So, was Feb 5 actually the bottom of this correction? Well, there were indeed some elements that have marked bottoms in the past as I mentioned that day but a few things were missing. As the market worked higher one of those missing elements - the Rydex indicators - actually gave a strong buy signal but the 2 other main indicators I track, AAII and the 10DMA put/call ratio were close but not quite giving the same strong buy signal that was registered at the July and November lows (the signal was a buy but not a "strong buy"). This makes the market a tough call here in the ST especially now that we are ST overbought. I realize that you don't always get "everything" to line up the way you want it to and so it's quite possible that the level of pessimism we have now is enough for us to go upwards and onwards from here after perhaps working off this ST overbought condition but because of those holdouts I mentioned the market is susceptible for another run at the Feb 5th lows.

The bottom line for me personally is that I'm not going to chase the market here and add beta with an index long trade unless I see everything line up the way I want to see it. I already have exposure via my individual stocks and even though they have for the most part been fairly non-market correlated, I'm not going to "press" the long side here by adding an index position unless I have a very strong conviction. I have a decent cash position right now to take advantage of opportunities. The next 5-7 trading days should be interesting.