2/11/2011 premarket

 

Morning folks..futures under a bit of sell pressure but nothing heavy.  as  we have seen the last few days these gap downs have been aggressively bought by mid afternoon. We shall see if the same happens.  the market was a bit choppy the last few days as the morning weakness causes us to sell our morning positions only to see the market rise back end of day.  Today probably a good idea to see this mornign weakness through….  and then wait and see if there is a end of day bid then add to our trades then.  Unless there is an epic epic high volume setup.  if u look yesterday $lmlp $alu  $aezs $scon were all 5-10x its average daily volume.  What i can say is that its a positive sign to see the market dipping slightly working off those overbought conditions. At this point it seems to be a healthy sideways consolidation

 

we dont have any significant news catalysts as of the moment so expect a choppy market as we consolidate or dip in this area.  But remember path of least resistance is higher and its tough to fight that.  be patient and look for low risk high reward opportunities…its getting a bit tougher right now as so many stocks are extendded..just be patient trade a bit smaller a bit less while this chop figures itself out.  Often its tough to daytrade in this environment as you have to sell so much quicker or get whipsawed.  what i have found is that if u trade a bit smaller but give the stock a longer leash then u dont have to worry so much about the whipsaw as the market seems to be getting bought up end of day.

 

didnt see too many great setups last night…besides $lng

 

ill be scanning intrady and keep u abreast of anything new i find.