I’m finding very little to trade today as the market attempts to stabilize after the recent selling. The 60 minutet chart of the S&P 500 (SPY) is not very encouraging for the bulls and right now I think stocks have lost too much ground over the last few days to consider short sales. If this market is going to provide us with upside opportunities over the next week or two it will have to first close above teh 129.50-130 level which would set up a nice bear trap.
Days like today can test a trader’s discipline, it is easy to look too hard for something to do and force trades where we have no edge. I do have a small position in ZP that I think can get going over the next few days as the NY Auto Show brings more attention to the Smart Car. I attended the Denver auto show two weeks ago where they had 5 or 6 Smart cars displayed and they attracted a ton of attention from the public. Hopefully the executives at Zap (www.zapworld.com) and their public relations firm can take advantage of the huge media opportunities over the next few days. As well as being good for their business by driving sales, it should increase the public awareness of the stock and we can sell it to them at higher prices.