Replies to post #1273 on S2 Option Trader

[plashadpobedy]

Goofy...those are some sad charts on LIWA, APWR, & GSI...

The market's walked away from the penny-stocks like the plague. The RUT's (Russell 2000) small caps are falling faster than the Dogs of the Dow type stocks. Consumer Staples also taking a hit (XLY):

RUT: http://stockcharts.com/h-sc/ui?s=$RUT&p=D&b=5&g=0&id=p40081759771

XLY: http://stockcharts.com/h-sc/ui?s=XLY

Many of the big index stocks are still holding their necklines (for now) (i.e. JNJ, MMM, CVX, COP, etc.). The big boys keep jacking the multi-nationals to buoy the market, but still the SPYs are dropping ever so slowly. The SPY broke it's neckline at $129.50 on Thursday. I'd say it's headed to break it's 200 dma by the end of the month:

SPY: http://stockcharts.com/h-sc/ui?s=SPY&p=D&b=5&g=0&id=p52154953063

The market's falling. There's isn't much more than 2 or maybe 3 sessions a stock will stay high, before filling 100% or more. If you don't get out by the end of the session, you can easily be trapped the next day when the stock's down in pre-market. Hold for bounce, or take the chance of getting trapped in a long that goes to a new low. It's the new market paradigm.

The problem is, that there is "not enough volatility" in the market, making day-trading really tedious. It's all HFT, with computers trying to scalp a few pennies off a stock. You can't make any ducats unless a stock moves. Unless you can trade in lots of 50K or 100K shares.

Before, when the market was going up, resistance didn't make any difference. Now, support doesn't make any difference. I wouldn't be "value-shopping" right now, unless you definitely think $Ben's gonna bring out QE3. We got some time before the $Timmay ultimatum will happen. The market's still falling in it's own crappy way.