THIS IS GOOD!!!

We want this sell off. I'll repeat...we want this sell off. It has been hard to continue to buy into this trend. We want the market to pull back and give us some better trading opportunities. When stocks start to get too far away from their 50 day moving average (above or below it), they will begin to move back towards it. Many stocks have pulled back to this average over the last two days. We will wait to see if the 50 day MA holds as support for a lot of these stocks. For the S&P 500, we will look to see if the previous resistance of 1038 will hold as support. The VIX spiked up today, but closed just below its 50 day MA. Those are the things I will be watching for tomorrow. This sell off should not have caught you by surprise. I talked last week about the VIX hitting the support around 23 and all the divergences in the technical indicators. You could try to buy puts in this sell off, but the safer trade would be to wait until the sell off completes and look to buy back into these uptrends. I hope you listened to my recommendation to sell out of RIMM going into today's earnings announcement. RIMM is currently down over $12 in after hours trading. If you stayed in the trade and didn't take any profits, this move wiped out all your gains...and then some. IBM still looks very good. It closed up a bit today and it is holding support at that $120 price area. It is also sitting on its 10 day moving average. I still like natural gas, but wait for confirmation. I've soured a bit on the Homebuilders. I might come back to them if they breakout of this latest pullback. I still like BIDU and SOHU...but wait for confirmation.