Ever lower, but maybe a bounce?

Today's action could only be described as just plain ugly. The Dow dropped clear down to the lower Bollinger band at 10,977 before rebounding a bit to close at 11,023.50.

But there is a silver lining to this carnage. After a long wait, it looks like Wall St. is getting ready to hold a sale. A lot of stocks on my watch list that until recently looked overbought are now starting to look oversold.

So where does this leave us? We are still way in downtrend territory according to the RTC, so I must leave the red arrow in place for the short-term trend. However, you can see how oversold all the indicators look after today's action, so at least a one day bounce tomorrow would not surprise me at all. For now at least (8:30 PM), the ES is up 300 and the NQ and YM are also in the green. But because of the magnitude of today's losses, I think a short term trend change now becomes anywhere from four to six days away.

Trades

I dipped my toe in the water today and picked up two interesting stocks. First I bought some JRO, the Nuveen Floating Rate Income Opportunity Fund. I've had my eye on this one for a while, but couldn't find a good entry point. I think today provided one. It is currently yielding an attractive 6.72%, but what makes this really interesting is that they pay out monthly rather than the usual quarterly. I like that.

My other buy today was OMEX, Odyssey Marine Exploration. You may have seen their show, "Treasure Quest" on cable. OMEX at 1.92 is looking oversold. I'm not expecting to get rich on this one - it's more of a vicarious play. I can't be on the Odyssey Explorer hunting for sunken pirate treasure (arrrgh!) but I can buy a few of their shares. OMEX has limited downside at this level and if they should happen to hit some major shipwreck brimming with gold dubloons, it could take a nice pop. It's just a fun trade. We'll see how she sails.

And just to show I don't always talk about my winners, my entry into TIE last week was poorly timed. I've got some unrealized losses on this one, but I'm going to hang on anyway.