The scenario I posted 2 weeks ago played out very nicely, and now we are forming a tight range in the S&P and DJ. These two indices broke out of the triangle ranges they had been forming in the last 3 months, and now seem to be flagging on the daily. The Russell is still in the triangle consolidation (slightly lagging the other indices) and the Nasdaq has yet to reach the top of the range from 2 months ago.
A small time correction here would be great, so I'm expecting more choppiness in a tight range, and then a move higher from here. Since last week, Europe doesn't sem to matter anymore... The ATR of the indices has been dropping and overall volatility as well. This to me signals a possible beginning of a trend! Or, it could also be the calm before the storm... we'll have to see.
Here's a few stocks I'm watching this week:
Long: OVTI, AAWW, AVID, EGLE, TLB, FWLT, OXY, GNW, MTOR, PWER, CADX, AXTI, ARAY, MY, QTWW, FFN
Short: QCOR, WLT, SINA, CTRP
Possible parabolic shorts: LCAV, REE, ZGNX, BDCO, MON