Friday

I expected us to consolidate on thursday and so we did. There was lot of action in the heavy momo names especially in tech land working there way out of oversold conditions. After the close Microsoft beat earnings but if last earnings season is to be respected Microsoft sold off in a couple of days to levels before earnings. I think we have a chance to do the same thing as I am not sure we are finished to the downside on the markets.
I would love for us to climb upward to the 1400 level on the S&P to get short. I think there will be a comfortable level to play the market down again. Next week is the FED meeting and for what it is worth I am very sure they will try to keep the market afloat till then and at least 70% of earning season is over. Lets face it folks after the FED meeting and earnings are out of the way we will continue the downtrend.
Fridays are usually tricky and it is best to keep it light but as usually the same pattern is in play. A gap up should be shorted and depend on how much of a pullback we get I would be buying the same momo stocks mentioned yesterday. One important thing to look for on Friday is volume as it is the telling tale.