Keeping the Balls in the Air

 | Jan 27, 2012 | 10:40 AM EST
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Although the indices are red and struggling a little, the dip buyers are still lurking about and providing some underlying support. Dip buying support has been the predominant theme so far in 2012, so you can't help but wonder how much longer it will last.  

As Helene Meisler mentions in her column this morning, the market has had a tendency to become more and more overbought and then suffer a very sharp reversal as the underlying support suddenly disappears.

That is what I'm watching for at this juncture, but I'm still trying to knock out some quick long trades while the market holds reasonably steady. This morning I added some Raptor Pharmaceuticals (RPTP) and Zynga (ZNGA), but these are definitely shorter-term rentals that I don't plan to hold for long.

The juggling act in this environment is to respect the warning signs that are developing in the indices, while still trying to keep some trades going. To do that you have to keep your time frames very short and stay vigilant, but it beats trying to load up on shorts when the market refuses to back off.

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