The inability of crude oil to hold so much as an oversold bounce this week from badly beaten-down conditions surely cannot be a good sign for global growth. While I am aware of the geopolitical theories as to why this is happening, I am also not discounting the potential negative implications of bid-less crude.

Looking ahead, I am keying off of crude and the correlation to equities to see if stocks come under pressure if crude remains weak.

See you after the bell for my video market recap with more discussion.

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I am testing out a short in the small caps as we speak, based on the 30-minute IWM support trendline breach, seen below.

Inside 12631, I am long TZA with a protective stop-loss below $15.70, though I may cut it sooner if proven incorrect.

Small caps still have major technical issues, from a long-term perspective. And the last few days of exuberant bouncing does not negate that damage.

Let’s see if bears can lean on dip-buyers here for a rollover.

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Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

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Here is a great quote applicable to trading. This comes via ChessQuote (@chess_chat) on Twitter, one my favorite follows:

“During a chess tournament a master must envisage himself as a cross between an ascetic monk and a beast of prey.” – Alexander Alekhine

To be sure, with the market grinding up like this, and a bit of chop, I am in ascetic monk mode more than beast of prey mode for now.

But that can change quickly…

Looks like the DDD bubble is continuing to unwind this morning, with a bad chart getting worse.

Momentum, indeed, cuts both ways. And stop-losses are paramount when trying to scoop up shares, especially on the “other side of the mountain.”

Elsewhere, the market is a choppy mess this morning, though FB is still best in class among the leaders.

Keep an eye on ACHN to see if it holds over $11.50 for a squeeze higher.

In addition, failure of crude oil to hold a bounce remains an inter-market concern, due to deflation implications.

I am back to 100% cash this morning after taking a loss on another entry into LAKE, with the HazMat suit player seeing no bounce off its 20-day moving average.

The market is flattish here, with an old tech name like Yahoo! still hovering near resistance since 2000, seen below on the quarterly chart.

This would be a massive breakout, over $44, if it does happen here. Marissa Mayer’s firm has made strides. But I suspect it needs a bit more time to base under $44 before the long-term breakout does occur down the line.

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