Too Early to Rally?

Like many other traders I like to see bottoms made late in the day after several hours of what feels like endless selling. We’ve got an early run today which is getting close to the resistance of the last several days. Will the market roll over again at those levels? I don’t know but I won’t be surprised if it does. Anyway, here are some things that I read this morning that may be worth a look:

• List of Challenges for Short Sellers Keeps Growing Longer – Shorting is tough but it can also be lucrative. Some of my biggest winners over the last couple of years were on shorts.
• Stephen calls Monday’s action a bull trap and lays out a scenario for a Friday climax. He also talks about what will make him (more) bullish on the market — Price. (I was LOL when I read that ‘you buy first’ comment. I feel ya on that Stephen!)
• Jon, the ‘Fickle Trader’ ponders when oversold becomes too oversold. I have to agree that I’d rather look to sell rallies in this market instead of buying dips.
• Morningstar has a piece about finding your investing edge.
• Dave Landry has miraculously found some very bullish charts.
• If you want to try out Yahoo! 360, Jeremy is giving away invitations. You can get an idea of what Yahoo 360 is by checking out Jeremy’s 360 page. I’m tempted to try it out but I’ve already got way too many web sites.

Update: Dave informs me that he’s giving Yahoo 360 invites away as well. You may get quicker response from him vs. Jeremy, who’s gotten hundreds of requests. You can contact Dave at dmabe [at] runningland [dot] com.

And that reminds me, I keep forgetting to post a link to the Stock Charts FireFox extension that Dave wrote. Here’s Dave’s description of what it does:

I created an extension that lets you select muliple ticker symbols in a web page seperated by spaces or commas (or both) and then open a tab with a stock chart for each one. By default, you can choose from stockcharts.com, yahoo.com, or bigcharts.com. You can customize these or add your own.