I see that the futures trading is indicating overnight weakness. Indeed, many areas of the market are either already oversold or rapidly approaching that condition. In particular, the steels, solars, and big banks have seen roughly 30% haircuts across the board. For a trade, I think that they are setting up to be much more buys than sells, especially if the futures hold and we see a gap down tomorrow morning (buying into the weakness). As always, I will have a stop-loss in place of roughly 7% or tighter, depending on the technicals.
I also wanted to include the chart of PRMW. With the coffee plays set up well and outperforming, such as GMCR and PEET, and SODA garnering all sorts of attention, PRMW employs a similar business model to GMCR and SODA. The price and volume pattern are exactly what we look for in terms of a bullish setup.