Volume is light and there doesn't seem to be much emotion, but the indices are strong again and breadth is approaching 2-to-1 positive. Nearly all major sectors are in the green and if folks are nervous about a selloff on the Fed, like yesterday, they aren't showing it.
In this sort of market it is best to set aside the big-picture worries and focus on stock picking. Longs are still working, and if you are trying to put on shorts, you have your work cut out for you.
I continue to trade in very short-term time frames, but I am taking a longer-term view with Mellanox (MLNX). I've been nibbling after it was hit the other day. I expect it builds a new base and works back up into the next earnings report.
Another stock of interest today is Qihoo 360 (QIHU), which is giving Baidu (BIDU) some completion for the search market in China. An article today mentions QIHU may start using Google's (GOOG) advertising system on its search engine. The stock has an attractive valuation and has a cup-and-handle technical setup.
I'm keeping tight stops on everything and I'm ready to hit the eject button. As I mentioned yesterday, my gut feeling is some nasty action is likely after the Fed makes its QE3 announcement. I'm not anticipating it, but I'll be watching to see if warning signs develop. For now, the focus remains on long trades.