As expected, we had more unwinding and choppy action in the market today. A few stocks on my list to watch tomorrow include EOG, DIVX, MON, EQIX, and DUG.

EOG reversed yesterday’s down bar, and is close to breaking the high from three weeks ago.

DIVX broke out of a 2-month base, and closed near it’s high after pulling back yesterday.

MON has taken out that wide range red bar. Ag stocks have been strong.

I’m thinking EQIX could be a short here if yesterday’s low of 87.12 fails. Note the topping tails. Also, a second gap higher is usually novice driven.

One day oil stocks will reverse. DUG is on my watrch list every day in anticipation of that event.

A few days ago, I showed how the Nasdsaq was hanging out at the top of it’s channel, and needed a pullback. Yesterday morning I thought we were going to get that breather the market needed. I was wrong. Prices moved higher most of the day yesterday. When they failed to head over that topping tail shown in the IWM 60 minute chart below, the only direction was down, until it found support to the left.

I tried trading the ultrashort TWM yesterday, using the buy signal on the 60 minute chart. You can see that the first buy signal ended up getting stopped out. The next buy signal was the winner. Now, I don’t really know how to avoid this , except by moving to a smaller time frame when managing the trade. I do know that you must take that 2nd buy signal though. Easier said than done when the painful memory of getting stopped on the last one is fresh in the mind. You have to look at the price void above, combined with the bottoming tail on the TWM chart, and ask yourself… Is there any reason to not take the trade?

Now if you do miss that 2nd buy signal, ratchet down to a smaller time frame of 15 or 5 minutes for a possible entry.