Nothing for the bulls to get excited about today, as the market is providing that rare follow through day on the previous day’s trading session. The best advice that I have right now is to resist the urge to try and game this market today. Instead, wait for the indices to improve their current situation, show that they are willing to recover off of this sell-off before entering into any new long positions.
As for shorting this market, I don’t see a lot of upside to doing so unless you are scalping stocks on an intraday basis.
The chart below – MolyCorp (MCP), represents an outstanding swing-trade setup that if you can buy it at or near the trend-line that it has held since the stock went public, you will have outstanding support levels below to hold the stock up, and the prospect for a huge move into the upper $50’s should the market’s love affair with the rare earth industry persists.
Here’s my chart analysis on MCP.
