Bulls skating on the thin ice!

Dreaming of a re-run of the Mid-March post Bear Stearns bailout rally, the (retailer) bulls jumped in at the open today on the news of Fed's rescue of F2, only to fall right into a swirling water fall as the smart money dumped what they loaded up last Friday in anticipation of the over-the-weekend Fed's rescue. You got to admire the big boys, who learned from the BSC event and executed the play to the perfection. Today's gap-and-crap action also made it clear that the market has lost faith in the Fed. Speaking of the Fed, it is probably down to the last bullet (rate cute) in its gun, which if used would be suicidal at this point.

Bears still did not show any killer instinct, which ironically may not matter much right now as bulls started to show real hesitation and fear today. As the major indices are drifting down through the 2-week mid-point consolidation zone, bulls better hope that there will be some real good news and soon or we could see the second leg down in next day or two.

Just went through my list and could not find any good swing long setups, rather, I will look for swing short setups from the following stocks: APA, DVN, JRCC, MEE, ANR, OIH, PCX, WLT.

I will also keep an eye on GS, which is on the verge of completing a head-n-shoulder formation on the daily chart. I may scale in if it spikes towards 166-168 in the early going tomorrow, with intra-day stop just above 171, closing stop around 168 and initial target around 150.