We were a little oversold to start the day, so the additional gap down this morning provided a good opportunity for dip-buyers. The big question is can they build on it or will the flippers kill it.
I'm already seeing quite a few fades, and breadth is a bit sluggish, although the indices are close to flat. I suspect that big buyers are not in a rush yet to accumulate on this weakness. There are buyers out there, but many expect more downside in the near term so they are scaling in very slowly.
My game plan is to keep refining my list of top stocks and to look for entries as they setup. I'm keeping all trades very tight, take gains fast when I have them, and be aggressive with my stops.
I'm continuing to watch some of the recent initial public offerings and secondaries quite closely. ExactTarget (ET), Tangoe (TNGO), Allison Transmission Holdings (ALSN), Demandware (DWRE), EPAM Systems (EPAM) and Michael Kors (KORS) are of interest in that group.
Glu Mobile (GLUU), which I've mentioned a few times lately, is heating up and has a nice volume pattern. That is one of my bigger positions. There are a number of others I want to bottom fish, like Clean Energy Fuels (CLNE) and Web.com (WWWW), but I'm in no rush.
I'm looking for buying interest today, but not enough momentum to make chasing very easy. Stay focused on the fast trades.
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