Overview Thursday 13 August...

Once again, the bulls held the market tough. There wasn't really much going on today. We had some earnings and some macro reports out of retail land, but that's about it. Sadly, I was tied up in meetings pretty much all day at my job, so I didn't get to watch the market really at all. Such are the drawbacks of having a first-shift job in New England.

Short-term bias: bearish (I'm still maintaining this as bearish, if only because I'm not chasing, but I do believe we had a buying climax)

Intermediate-term bias: bearish (I still think this correction will take us lower, perhaps to 800 on the $SPX and I don't think we're ready to power higher quite yet)

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:

EGO was today's big winner. Its CEO was interviewed on Mad Money last night, so the stock benefited from the Mad Money Effect (aka the Cramer Pop). Mad Money is a widely-watched show, and stocks that are mentioned positively on there tend to get some strong action at the open the following day. It's really quite amazing to watch. If you watch the show with a real-time trading program running in the background, you can actually watch the stocks he mentions pop in the aftermarket. EGO was set up perfectly for this, with a low-volume pullback pattern, and it just needed a catalyst to break out. It got it. EGO is a buy on weakness if you are bullish on gold and I would agree with Cramer that it is one of the best producers out there. Plus it's small.

BAC was also a big winner because of the "news" I mentioned yesterday. It wasn't really news at all, but whatever.

I am taking MJN off the watchlist because I will be moving this one over to the IPO Trader blog.

More watchlist cleaning to come over the weekend, and some additions. I know I said that last weekend, but I mean it this time. :-p





Positions: Positions: long $SPX index fund in 401k