A whirlwind weekend of news and developments around the globe set us up for an active and interesting trading session Monday.
Although the U.S. markets are still technically in a month-long downtrend, AT&T's (T) huge $39 billion bid for T-Mobile USA has -- perhaps erroneously -- emboldened some investors who think the deal could spark a wave of new M&A activity.
Meanwhile, continued strife and uncertainty in Libya is pushing crude prices higher, as U.N.-backed airstrikes that began Saturday put 2% of the world's oil supply at risk. And all the while the ongoing battle in Fukushima, Japan, to bring the earthquake-damaged nuclear plant under control continues, amid alternating reports of progress and setbacks.
So with risk coming in and out of the market almost as frequently as the tides, where do you go from here? We asked Simon Baker, the CEO of Baker Avenue Asset Management, what the smart money is doing in light of these developments.
Baker tells Macke and me he has been increasing his cash position since mid-February, and he's currently 50% in cash. The risk of owning equities, he says, has risen with the numerous international crosscurrents. Baker says it has become an "emotional" traders' market.

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