After three days of alternating 200+ Dow moves, it looks like another one tomorrow. The S&P futures are up over 6 points after a -258 point Dow decline. That could reverse by morning or grow worse. I spent a long time looking for potential plays today but I could not find anything that could withstand another market whipsaw. With the volatility rising, any new long position would have to be bullet proof and I could not find any. Any new short position could be wiped out minutes after entry if we get another +200 point day. The S&P-600 closed at a two-month low and right on the edge of a support break. Small cap stocks are not doing well in this market. I am recommending we pass on adding a new position today.
If you have to have something to trade you might look at shorting Sears Holding (SHLD). The chart is moving lower but there is only $1.50 before decent support at the old low. The market rebound yesterday did not affect the decline.
NEW BULLISH Plays
No New Bullish Plays
NEW BEARISH Plays
No New Bearish Plays