Thursday Evening

Markets closed on their lows... SPX is flirting with breaking 1300. There are plenty of sentiment and technical indicators suggesting a rally is overdue, but it doesn't matter until it matters.

Thursday Afternoon

ALLT (Daily Chart at 11:45AM)

This one was a beaky mention from a few months ago.  It was written up in IBD print edition today.  The company is an internet traffic security software provider.  They specialize in deep packet inspection and have recently signed a significant telco as a customer.

Looks like the stock is sitting on support right here right now and testing the 50 day sma.  (The 50 day has not been terribly relevant.)  You could take a starter position with a tight stop for a low risk trade.  I have no position.

Thursday Morning

Gator's Chart of the Day: RVBD

One thing I learned from my time on the Rev's blog is that rallies in a downturn can be fast and sizable and I do expect we will see one soon.  Will it be Thursday?  Couldn't tell you.  When it comes I will look to participate but until then I'll continue to watch from the sidelines. 

Something I learned from Dan (and Smita and our Evanesce) is the pattern shown by RVBD.  They call it the Drop Dead Gorgeous.  The stock drops quickly from some event (news or earnings for example) and then it grinds a bit with little or no bounce.  Frequently that is the clue that it has further to go to the downside.  It's not unusual for the next leg to be as long or longer than the initial drop and you can see RVBD is still falling.  Is it a short right here right now?  Maybe but a better place would have been at 20.  Now it would be on a move up that stalls.  Looking at the chart I'd pick 17.50ish for that to happen.  I'm not predicting but ...