Gap-up opens on Monday mornings are always an invitation for disciplined trader to do a little selling, but you will usually have to add long exposure back when the dip-buyers jump in and support holds.
The action this morning is a little more bearish so far. The opening strength was sold and we had a slight bounce, but it failed and we are making new intraday lows. As I mentioned in my opening column, failed bounces and weak dip-buying make for a reversal.
I sold down a few things into the opening strength and now I'm waiting for setups to develop. A couple of names I'm actively trading are Liquidity Services (LQDT), which is my stock of the week, OCZ Technology (OCZ), which is digesting a secondary, and Velti PLC (VELT), a Facebook sympathy play. My trades are very short term and definitely staying opportunistic. While I'm not calling a top, I'm seeing a lot of stocks that need to reset.
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