Randomness is the only thing we can count on in this market lately. Once again, after a strong trend day it goes in the other direction the next. There isn't any momentum in either direction that lasts longer than a single day. That is great if you have a timeframe of a few hours, but it's quite a challenge if you try to position your trades.
In a market that moves like this you either have to lengthen your timeframes to cancel out the computer games or shorter them to go head to head with the machines. Buying technical setups in in the intermediate term is much more difficult, especially if your timeframes are just a couple days.
There are still opportunities, but it is much tougher to find them. A good example of something that is working is silver miners. I've highlighted Silver Wheaton (SLW) as a Stock of the Week previously, and there are others in the group with momentum, such as Pan American Silver (PAAS) and First Majestic Silver (AG).
Themes such as precious metals are the best place for trading but even then, it can shift fast. A number of small-caps I've mentioned are still acting quite well: Mitek Systems (MITK), Celator Pharmaceuticals (CPXX) and Teck Resources (TCK) are on my list for potential additions, but it is not easy to be aggressive. The most challenging thing about this market is that you simple can't be very aggressive. When alternating trend days you either have to be a flipper or a long-term holder. The middle group is where it is hardest.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider MITK and CPXX to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.