There are some bullish elements falling into place, like the drops in the VIX and Japanese yen, oversold readings in broad market oscillators, and all sorts of government bailouts. There are, however, plenty of risks remaining in the financial system. I think a smart way to approach the market over the next few weeks is to buy strong stocks on dips, or pullbacks, and then take profits rather quickly. Stocks like Wal-Mart (WMT) and Cisco Systems (CSCO) come to mind. When analyzing the market over the coming weeks, keep close watch of the Dow as it approaches 12,750. I paid a lot of attention to this level on the way down and so did many other traders. The level should be of equal importance on the way back up, but this time 12,750 should serve as resistance. A break of 12,750 should prolong the buy on the dip strategy, so watch for such a break later this week or next.--TradingPrice