To get the most bang for your buck right now, the best way to trade is to focus on the short-term. Right now the market is volatile with peaks and valleys being created every other day.
At some point a stock creates a bottom, and, if not a bottom, at least a base before moving to the next trading level (higher or lower). The following stock charts all have the following in common – they were hit hard with a deduction in stock price and have created some sort of base for a possible breakout.
AK Steal (AKS)
Crocs (CROX)
OmniVision Technologies (OVTI)
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Crocs Inc. (CROX): Anatomy of a Falling Knife
(Scott's Investments, 10/20/11)
Omnivision: Seeing Value
(The DIV-Net, 9/7/11)
OmniVision Can't Be Saved By JPMorgan
(Morningpick, 10/14/11)