Things looks pretty good for most of the day, as the market rested from its huge up-day yesterday, but a violent whipsaw into the close indicated that sellers are still in the market. The S&P 500 and the Dow both closed lower on heavy volume.

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A high volume down-day is obviously not a positive sign right after the follow-through day yesterday.

There was some incredible action in gaming stocks, specifically LVS, which closed up +80%.

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This will be a stock to watch for day trading. Other gaming stocks to keep an eye on are WYNN, MGM and BYD, all of which had massive gains today.

I’m still not ready to jump into the market with new long positions. First of all, there are very few charts that look good, and second, this looks like it’s just another bear market rally that will soon end and move lower. I am not comfortable holding any new positions overnight here.

Trade Ideas for 10/30/08:

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Good luck and good trading!