Not Impressed/Stand Still

Although today's market action may have seemed impressive at first, it was really nothing more than a continuation of yesterdays oversold bounce. Volume was a bit lower and we did not close at the high of the day. On top of that, there were many stocks that looked broken, busted and sold off from institutional investors...


An example of the horrendous chart action that I'm talking about...


NCR





Opened at 49.82, fell down to44.14, then zoomed up to 55.84 and afterwards, closed down to 48.81. These high volume, wide and volatile price swings are not terribly positive.

















MOGA





Another example of a chart gone bad. The huge run up and subsequent late day fall is due to selling pressure..not buying from institutions as one may believe.









The financial media outlets are bragging and boasting to you to buy these bounces hand over fist. If you want to lose money, go right on ahead. Following the general media (which the general population gets its investment and financial advice) is not going to give you the edge. The very best traders are keeping cash heavy and not going crazy with any new buys or even short positions from that matter. I'm not saying to not keep your watch lists ready with new buy ideas or short positions. In fact you should be doing just that. Not every stock chart looks bleak like the ones posted above. There are a few stocks ( a small handful) that may actually set-up nicely if the situation improves. As it stands, I haven't made any drastic changes to either my long or short positions. I'm holding my portfolio tight, and waiting to see what happens.