Wednesday Evening

The bulls were definitely active today... S&P futures went out right on the high at 1315.75. It certainly looks like the squeeze is on. There are some potential red flags for tomorrow.... but overall, it has been a decent bounce off the lows from Friday. The big question is whether it sticks or rolls over. I've drawn in on a daily chart what I think might be in the cards going forward. Just guessing of course.

Wednesday Afternoon

The battle is on today... the bulls are pressing hard here and the bears are trying to keep a lid on things. We are about 15points up off the opening low in S&P futures... and short term intraday indicators are getting a little stretched. Pull backs have basically been non-existent so far... and I get the sense there are a lot of bears putting up a fight. The afternoon session is going to be interesting.

Wednesday Morning

Gator's Chart of the Day: MCP

This rare earth metals stock may have found a bottom.  It has printed three green candles in a row and Tuesday's was the tallest.  Volume was only average but the stochastics have printed a buy signal and it is so far extended below the 50 and 200 day moving averages that it has plenty of room to rise. 

Tuesday was the first close above the 10 day sma since the down turn began.   The forward P/E is 7 and 27%+ of the float is reported short.  The short ratio is nearly 6 so there is a decent chance for a squeeze.  (P/E and short info from Finviz)

A stop below the bounce point would mean a 10%+ loss from the last close so you need to manage your risk with position size.  Start small and add quickly when you have profits but keep moving your stop higher so you don't let a winning trade turn into a loser.