Still hanging out with the Chickens

On Monday US markets across the board closed higher after a strong rally in the last 90 minutes of the day. The DOW gained just under 190 points, while the S*P500 was up about 1.4% and the Nasdaq was up around 1%. Volume was higher on the NYSE, beating out Fridays volume levels by about 8%, while on the Nasdasq volume retreated eight percent.
I tend to follow Investors Business Daily very closely, especially the Market Pulse and Big Picture. They are now calling this market as one being in a confirmed rally after having had a follow through day in the Nasdasq on February 13th (IMO A weak one) and then the follow through day today for the NYSE. Typically I try not to fight with IBD, but in this particular case I do not find myself strongly agreeing with them.
As I see things we have had very weak follow through days that did not not lead to any new leadership or strong market moves. In fact after the Nasdasq's February 13th follow through day the Nasdaq suffered a distribution day the very next trading session. Additionally, although volume did spike on the Nasdaq and the NYSE's follow through days it did so very slightly. Finally I get to market leadership. What leadership you may ask? Well, I have the same question. I see plenty of stocks that are coming off of lows, thats all well and good, but stocks coming off lows do not ignite bull moves. You need to have area's of strength in the market that can lead higher and generate excitement on the part of the crowd. This is sorely lacking right now.
So, for the time being I remain mostly in cash and on the sidelines. If this does turn out to be the real deal and we get a strong rally there will be plenty of opportunities to get on board. No market goes straight up or down for too long. My plan will be that if we do now get a pullback on light volume I'll start tip toeing into a few positions on the long side. For the time being cash is king as far as I can tell.