Editor's Note:

The lack of follow through on the bearish reversal a week ago has put the bears on the run. The funny thing is that now both the bears and the bulls want the market to go down. Of course the bulls want a pull back so they can add to positions. Unfortunately, when both sides want the market to do something it rarely cooperates.

The trend is up. We do want to respect the trend but our focus is long-term trades. I am reluctant to buy new two-year highs. We are adjusting some of our entry point strategies on the watch list but I'm not suggesting new positions tonight.

One stock that did catch my eye that is not on the watch list is Wal-Mart (WMT). The breakout past resistance near $56 has reversed but shares are now testing new support. Investors could open bullish positions now or anywhere on a dip into the $56-53 zone. I would use a stop near the 200-dma (around $53.00). WMT does not move very fast so you may want to turn this into some sort of vertical spread or calendar spread to maximize your gains. It could take a long time for WMT to post any significant gains.