OK. First a couple of things tonight. I’m guessing that when I retire, I’ll have better things to do then tell investors China’s stock market may be excitedly over-inflated. I mean come on Alan, you saying that is only going to affect our market. Do I really care? No. Because my online stock trading blog is only concerned with chart patterns, and trading them. I know. Boring. But it’s what makes me the money. In fact, I’m now long the UltraShort QQQ ProShares - QID, and the UltraShort Midcap400 ProShares - MZZ. And again, I could care less what news events drive this market. As an online trader, all I care about, is volatility.

Second point tonight. I used to subscribe to Real Money. I happened to swing by realmoney.com today. Well, I just looked, and it’s gone now. I was going to comment on James DePorre’s morning headline which read something to the effect of, “remain skeptical, but stay trading with the flow of the market”. Okay. That’s not an exact quote of Rev Shark, but I know what the whole post would say. I eluded to it the other day when I wrote, “just go long, just go long, just go long”. You have to trade momentum in this market. You have to buy new highs. You also have to be cautious, because at any time, you could wake up to the futures being locked limit down. Serious. Will it happen? I don’t have a clue. I’m just hitting momentum stocks as they come along, and taking small positions in short-biased ETFs, when I see a predictable trading pattern.

We had a reversal today after a gap up, at a major inflection point. (For those of you not reading Jeff Cooper’s excellent commentary at Minyanville..check it out..happy to see him back..ok so…), pay attention to this close, because with negative divergences in the market, it’s a warning sign. The correction could be starting.

Hence, a position in QID, and MZZ was started today. Note the outside day in QID.

We also saw market leaders AMZN, GOOG, and AAPL lose their gains for the day. Stay on your online stock trading toes.  Also, if you think this blog should be on the KirkReports must read blog list… write him.  All 3 of you..that read my commentary.

You woke up a happy camper if you held MGM - MGM Mirage overnight. I trade two other stocks in the sector, LVS and WYNN, so popped them on the radar. WYNN provided this online stock trader with an entry using the 5-minute chart. A steady pullback for six bars, with the buy signal on the seventh bar, gave a risk - R of .60. The low of the fifth bar was used as a stop.

I also bought some DUG on a reversal bar. We’ll see if OIH follows through to the downside tomorrow. Oil inventory numbers should provide a catalyst for movement. SPWR showed strength today. I was a buyer.