I had a question in the Forum recently I want to post my answer here also cause it wraps up my thoughts pretty good.
Markets are a crap shoot in front of Europe news ie. Greece, Spain, We need to clear some things up to get money to really flow into the markets and buy equities, Markets going to react hard on any news up or down, My main concern is not missing an opportunity in the markets, So if that means selling and going into cash or just being less exposed to markets right now thats what i am leaning too. Markets tend to force the hand of many trader right before it moves back in the opposite direction. Hoard the cash and be ready for a opportunity. That is when most of the money will be made, lets cut back on shares so it will be easy to manage positions. I expect something from the central banks, but what and when is the lottery ticket. Hate to say sell and wait it out then see the market rip into a relief rally, but getting out doesn't mean you can't get back in...
With that said the shorts definitely have the ball and the relentless selling on Friday was not a good sign. I was happy to embrace some shorts last week to help counter some losses on the longs. Coming into this week I am looking forward to trading the 1269-1266 area on the S&P 500
This weeks watch list really has a great selection of both shorts and longs. I picked up some GOOG calls at the end of the day Friday as it seem to hold its gap down well, I didnt mention this on the watch list but wanted to mention it here as it looks great. Also VRSN is a great focus stock this week among many others. On the short side look at the recent high flyers that are just beginning to roll over Short set up on the watch list SNI, ALL, PRGO to name a few. The HPS site is progressing nicely. If you have any feedback or would like to see something added please email us at firstname.lastname@example.org.
link : http://daytradingradio.com/include/data/files/2012/06/02/$spx-sixty-minutes060412.png?f