Dow and S&P
If you want to play this bounce, you may be able to as long as you have modest price targets and take the profits as you get them. I would be looking for possible 5-7% moves in individual stocks as the best case scenario. Again, I could be wrong and maybe we will have a more significant rally. I don't expect that, and if I play any bounces, I will tighten my stops as I go if I get any gains and probably take profits at those 5-7% levels. I don't think this is a situation where you're going to make a killing, and you might just be better off sitting out a few days and waiting to get short again. I attempted to get in a few of these stocks after-hours but with no luck. I will not pay up for them - we'll see if I get in any tomorrow.
ABAT, SINA, TEX, UYG
Here are some of the shorts I will be watching over the next few days for possible entries for shorts. I want to focus on the volume mainly - as long as the volume is lower, I will feel comfortable taking a shot at these as they get close to resistance. For instance, SOHU bounced today but the volume wasn't there. That's what you want to see in a short - a weak volume rally up to resistance.
SOHU, RIMM, SVR, VMW
Best of luck Wednesday. We have the oil inventory numbers coming out at 10:35, and that will likely have a big effect on trading, as oil does everyday. Just because today looked bullish doesn't mean we have to rally. The action on the Nasdaq 100 last Friday looked bullish too, and we proceeded to sell off most of the next two days, including today, so you never know. Right now, I am guessing I won't do anything tomorrow since I didn't get into any swing longs today - just wait on this bounce and be ready to pounce when it plays itself out. I am hoping we can get the oversold condition worked off and some of the charts I posted above rally just enough to put them in great position for low risk shorts. We'll see if that happens. See you tomorrow.