For the hyperactive a.d.d. trader im probably boring the crap out of you. This is the least Ive traded in two years. Im not seeing the easy money right now for swingtrading. I know a lot of the chunky munky yuppie traders were ecstatic about our weak bounce yesterday as confirmation that Monday was just some fluke astrological event. Take a look at SPY. See the volume???? Once again the dip buyers stepped in but they did not as men but little elves they could barely muster up an volume or bravery. yesterdays bounce was much weaker than the brutality afflicted by the bears the day before.
I was looking the 98 level on SPY to add some longs for swings but yesterdays action negated that. But there is no big edge in shorting right now since we are not near any resistance and the mkt is getting short term oversold.
For added pleasure our Asianese friends to the east in two weeks went from the short men with deep pockets who were slowly buying up every asset in the world to now they are just a billion people riding around on bicycles with funny hats who have an unusual addiction to McDonalds. Which is it?? Who knows. The Shanghai plunged another 4% yesterday and is officially down 20% from its bull market high. Loads of Chinese stocks are looking like shorts on bounces. Check out SNDA or WH. Bigtime distribution and can be good shorts on low volume bounces.
GamePlan: I will wait for SPY to get down close to 50dma before buying in bulk. If we get a low vol bounce I will short some of the China stocks.
I typically use 25-30% of my port to play small cap momo stocks If i see any about to breakout I will post on twitter.
Keep an eye on RTK if it bounces bigtime again watch for the fade, you might see Tim Sykes make the call and have all his minions short the thunder out of it.