The one thing this market has needed recently is rest. The short-termers need an excuse to sell, the folks who don't like to chase need an opportunity to buy and the charts need time to consolidate.
So far in 2012, the markets have immediately regrouped and gone right back up after a brief flurry of selling, which encourages aggressive dip-buying. We are seeing signs of that today as the market bounced sharply a number of times as traders rushed in when the uptick started. They aren't gaining any further traction, and the big danger is that they will find themselves trapped, which adds selling pressure if we retest the lows again.
I'm going to refine my buy list and prioritize the names I'm pursuing as charts develop. For example, Velti (VELT), which I mentioned a while ago, is high on my list. I want to see that consolidate the recent gain on declining volume and then slowly build that up, depending on the market action.
Others on my list include Santarus (SNTS), EPAM Systems (EPAM), Michael Kors (KORS), InvenSense (INVN) and VIVUS (VVUS). All of them would be attractive on lower-volume pullbacks, but this market has not produced much opportunity in that way.
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