Update and watches for 6/6/2013

I came into Wednesday's session with my account in 100% cash and no intention of adding any positions for reasons I pointed out in my previous post. However, when I saw the markets taking out their morning lows after weak bounces; I thought that the odds of another red day was very high. So I took a short position in $ANGI which was the only short set up on my watch list at $23.15. Although the markets did follow through and ended up having a trend down day...$ANGI did not follow suit. This stock is very thin and heavily shorted with solid earnings reports in recent quarters. So I'll be keeping a tight leash on it in Thursday's session.

As I highlighted in my previous post, the McClellan oscillator was already at levels indicating that the odds of some sort of bounce even if only a weak one is very high. Well as you can imagine; after today's ugly sell off the oscillator is now into even deeper territory. So shorting down here is definitely risky but the markets could still have more downside! Therefore I'm not sure if getting heavily long stocks is really a solid play here as the markets can easily work off this over sold condition with a day or two of sideways action and then head lower! So even if we do get signs of a reversal and you decide to add longs; I do not recommend looking for more than a 1 - 2 day bounce. At least that's how I plan to approach things.

My watches: