xjo, dow , s&p500 , nas , compq go belly up

For quite a while I've been very positive that the price action in Yankee land is purely a consolidation based on last years stellar rise .
Ok the indices are making lower bottoms and tops since Christmas or a bit after , so the trend is down but My logic was this remains ok until we have a break out in any direction .

The concern looking ahead is obviously oil , terrorists, elections, inflation , deflation, financial collapse ? plus probably a few more .

Now that the indu/s&p has found a bottom at the 59 day period and or channel support we see the indices climbing a wall of worry and something DONT JELL .

Oil is tracking higher , hurricanes in Yankee land will be expensive to someone or to all .
Iraq is not revolved yet and could drag on for a looooong time .

How to play it ?

Be long with close stops or buy insurance on a daily basis and be prepared to reverse positions quickly if the last major swing lows on xjo/ spi / dow/s&p etc fail .
Now we've had a weekly up break on some of the above it could be false break so losses can be limited quickly if the previous lows get taken out .

Please note I'm mainly in cash .

cheers ge