Yesterday's rally has brought us to levels in equities that give us hope for more upside into year-end and possibly into January/February.
The three day rally has brought the S&P 500 up to an immediate-term overbought level. After a pullback to the 1220-1230 level or so we would look to leg into some Bucket 2 long exposure via the SPY as well as some beta names like CAT and potentially a more volatile name like PNRA and others.
In our view the longer-term issues haven't been resolved with yesterday's central banks collaboration but may have yet (and maybe for the last time) bought us some time to add a little risk for a few weeks.
In terms fo gaps for Bucket 1 we have two huge ones below, and may have to fill parts of yesterday's big up gap before we can really continue higher. We will post a chart of these gaps later today.
One name we still like for Bucket 2 is ZAGG, although it woudl be above $12.40 for us to enter a position.
Keep your risk celarly defined, these are trying times even for the best of risk managers/traders.
