Overview Tuesday 11 August...

The bears were able to actually do something today, but the selling has still been mild and contained. The bulls are still in charge, however. Volume was pretty low today, and the heaviest hit stocks today were the best movers from the recent rally. Volume has been light so far this week, which is to be expected since we have a Fed announcement tomorrow afternoon. So, expect mild action tomorrow until that happens.

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:

AIG is just too volatile for what I'm trying to do with this blog, so I will be taking this stock off the watchlist. It was the big loser today.

MDR was the big gainer today, but it is also a candidate for removal. Other candidates for removal include BNI and SGR.

PALM held its own today, which is encouraging. I'm still in this one.

No changes to the potential new picks today, but I've relisted them anyway.

Potential new long picks: AA, AINV, ANSS, BZH, CBS, CQB, CROX, CSIQ, CTSH, FSYS, FWLT, GLBL, GRMN, GXP, HANS, HBC, IAG, JOE, LEN, LL, MMC, PCLN, RL, SPG, THS, TKC, VNO, WFMI

Potential new short picks: ICE, STEC



Positions: long PALM November $12.50 calls and $SPX index fund in 401k