The European Summit is holding this market hostage. It doesn't take much to move and significantly either way, so just trade by the short-term numbers. By this I mean:
1. OR pattern
2. Pivot stack
3. Floor trader pivot location
If you stick to our rules pertaining to these reference points you'll never get hurt too badly and you'll usually catch the big days. One key to anticipating the recovery from the sell off was the good relative performance by the financials - XLF and KRE, and energy (OIH) all of which did not follow the major indexes under the prior day's low, so don't let them out of your site.
Thursday, all but the Q's will have a positive stack, so if you're over S1 and the OR low look for bullish opportunities. Of course keep an eye on the financials and energy (OIH) for divergences.
If markets trade below S1, the bias is bearish. This keeps us out of trouble and offers the ability to catch any major decline.
Long
YUM
GOOG
WFM
BBBY
GPC
GOOG
BID
AAPL
VMW
LTD
FAST
Through R1
ABT
COST
ANN
JWN
PETM
LTD
Reversals
MRX
RHT
APD
FAST
BIDU
Short
VECO
MMM
LXK
PEP
X
CRM
