Overview Wednesday 15 July...

The bulls were in charge today, no doubt about it. They got a lot of good news at the open, such as INTC's perceived good quarter and news from COF that credit card delinquencies were sliding (this was not good for my DFS puts). Volume and breadth were strong, but the buying felt a bit panicked today, and I'm sure a lot of it was options-related. Tomorrow will be interesting with more big earnings reports and we also have some aftermarket news about the government stopping its talks with CIT.

And, a side note. I do not expect to put out a pick and a recap tomorrow night, thus why I did two picks last night.

Short-term bias: bearish (we've had a very powerful rally the past few days, but I believe resistance will kick in and drag us lower)

Intermediate-term bias: bearish (I still think this correction will take us lower, perhaps to 800 on the $SPX)

Long-term bias: bullish (I believe we put in meaningful, long-term bottoms in March, and would use the aforementioned correction to increase long exposure)

Pick updates:

DFS rallied hard today off the COF news. Needless to say, I was too early in this short and I stuck around too long. Clearly, I should have just taken the minor loss instead of letting it turn into a much bigger loss. Though I think $11 will act as resistance for now, I will be looking to exit this position and minimize the loss.

PALM rallied well today. It faded off its highs as the day progressed, but it's holding where it has to and volume picked up today. I'm still liking it.

I am considering dropping BNI from the shorts list, as it has rallied beyond where I thought it would and appears to be stabilizing. FCX, RIG, MDR, and SGR also rallied hard today with the market while AIG was down just a bit, but I still think all of these will prove to be good shorts.

BKC is still looking good as a long. I'm liking it with a stop loss still just under yesterday's lows.

ALVR rallied a bit, too. Some volume came in today, and as long as it holds support, I still like it on the long side.

Postions: long DFS August $12.50 puts, PALM November $12.50 calls, and $SPX index fund in 401k