We are under severe pressure in the early going and the faint aroma of fear is in the air as we grapple with more chaos in Europe.
Greece is falling apart again, an important member of the European Central Bank has resigned, several banks are in free-fall or halted and no one really seems to have a plan for dealing with these issues. It is a classic case of too much uncertainty, and that is sending folks to the sidelines.
We do have a little bit of dip buying, but I suspect that it is ultra-short term flippers at work, which means we can reverse back down quickly. There is a high level of nervousness, and any retest of the early lows will trigger a chunk of sell stops.
My strategy is to sit mainly in cash and try to pick off some fast trades. Although I have a shopping list of stocks I'm interested in longer term, I don't have any inclination to buy when the market is under this sort of pressure. I prefer to buy stocks when they are going up, not down. I don't care about buying the bottom; I'm far more concerned about buying the trend.
All I've done so far this morning is buy little gold stock Extorre Gold Mines (XG). If we crack the early lows and trigger another spike down, I'll be looking for some bounce plays, but I'm in no rush to put my capital at risk.