We have a very impressive bounce kicking in this morning. The small-caps are already testing Wednesday's highs but the senior indices aren't quite as energetic. What is particularly impressive is that Apple (AAPL) has remained in the red all morning. It came off its lows, but has not been able to turn up into positive ground with the broader market.
Breadth is solid at better than 2-to-1 positive, and we have leadership in biotechnology, chips and natural gas, while precious metals lag.
As I discussed in my opening post, the dip-buyers don't give up easily. They have done so well for so long that they keep pushing until they are hit hard more than once. The dip-buying bulls still need to prove that they can hold this bounce into the close. If they do, it will really put pressure on the bears.
I'm playing long but keeping it very tight, and I have no plans to carry much inventory. I still like the action in many of the secondary oil plays, and I'm playing a squeeze in ATP Oil & Gas (ATPG) and starting a position in Triangle Petroleum (TPLM), which is basing very nicely near its highs. Zoltek (ZOLT), a wind energy play, looks better and I added a little.
This sort of choppy, uncertain market is often very good for quick trading. Just be ready to move fast and make sure you are disciplined. It is easy to get jerked around, so you may need to trade smaller. But if you are aggressive with entries and exits, it can work out well. Just make sure you keep an eye on those dip-buyers. When they disappear, it will turn ugly very fast.
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