Correction - Round Two


Editor's Note:

The stock market's oversold bounce has failed at resistance and begun to roll over. Odds are pretty good that the major indices will retest their May lows near psychological support (not necessarily the intraday lows). Even if the averages do hit their lows that doesn't mean we'll immediately bounce higher. Stocks could meander sideways until investors grow comfortable again.

Right now fear is overpowering greed and traders are more likely to sell into strength. If you believe this is a market correction and not the start of something worse then we can take advantage of any future weakness. Open bullish positions on strong stocks near significant support levels. I've added three new candidates to the watch list.