Today I had a little time to "get away" from the vacation and analyze the market. My best bet is we will see a "dead cat bounce" followed by another leg down. Of course, I could be wrong and we'll see more resilience from the bulls.
Right now I am building three sets of watchlists. The first is a short watchlist, which consists of stocks and ETFs that I want to see bounce to resistance before heading south. Second is a list of bullish stocks that have held strong during the tumble. For instance, CROX has not been hurt by the market misery. If I do decide to play the long side, I will be looking for "CROX-like" stocks. Finally, I will continue to monitor my "top 100 watchlist" and momentum leaders like AAPL, MA, RIG and BIDU. This will give me a good idea of the underlying strength (or weakness) of the market and provide some possible long and short plays.
While I may take a few nibbles, right now it's best to workout strategies and wait for the market to show it's hand. Trade smart and good luck to all of you. I welcome e-mail and comments on how you are currently handling your trading portfolio.