Tuesday, February 15, 2011

State of the Market - 2/15/11 - "Better Than Expected"

We saw a pullback today on Wall Street, but overall it was a very well contained one with losses being very modest.   I frankly expected worse.  Volume looks like it will be higher which will add a distribution day to the count, but there really wasn't much heavy duty selling going on from what I can tell.   It could have been much, much worse and in that respect, the bulls should be happy.

I was stopped out of one position today (REDF) at $7.28 for a 1% loss.   I entered this on Thursday at $7.33.   It never saw any follow-through whatsoever.   I continue to hold my two long positions (LDK and QLIK) but am moving the stops up on both.  There were a few earnings/news-related plays today that caught my eye and that I will monitor over the next few days(CVV, NSIT, YOKU, JRN), but overall I don't see that much that has me excited on the long side.   I think it is probably better to let the market come in a bit more (even if it is for only one more session) and then look at getting long.

I don't have much else to say - perhaps the market will consolidate quietly for the next few days and allow setups to emerge.   If that happens, I will be ready to go.  Overall, however, I think there is more risk than reward at this particular point and therefore, I can't see myself getting too aggressive right now.   As long as short-term support holds, the bulls remain in control, even if they still could use some rest, and that's what I hope they get.   Good luck Wednesday.

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