Editor's Note

The Dow and S&P both tested initial support intraday and rebounded back to positive territory. The Dow tested 20,800 and the S&P 2,360 with minor penetrations on both before the afternoon decline rebounded strongly back to positive territory. The gains were minimal of 1-4 points on the Dow, S&P and Nasdaq but they did post gains after being down sharply.

The S&P futures are up +7 in afterhours. This is the biggest move of the week and the first time in positive territory. This suggests traders may be thinking the support test was enough and they are ready to go again.

I scanned my list of 300 small cap stocks again and nothing is begging to be bought. There were no indications of any number of stocks starting to tick up or down. Almost everything is flat with a slight bleed lower, just like the stocks in the portfolio.

If the market is going to gap up at the open anything we would add tonight would get a bad fill. There are still a couple major potholes in the road for next week and I would rather err on the side of caution and not try to force a position just to add a play in the newsletter.


No New Bullish Plays


No New Bearish Plays