Below is a snapshot comparing the 8-2007 NASDAQ to the current NASDAQ (green arrows represent the the two positive reversal days). As you can see the market managed to rally quite significantly off that turn around to new highs. That was the most profitable part of the rally for swing traders.
Do not look for new leadsership to emerge, even though some are bound to show up. Look for stocks that are already proven winners, have exhibited high relative strength during the correction, and are must owns for institutions that must be 100% invested (click on charts below).
I alerted readers of this blog early yesterday to the possible turn around. If you want real time alerts and updates, sign up at Twitter and follow Gennady17. Sign up for the FREE newsletter at Capitalist Bull for a daily digest of the blog's activites (don't forget to look for a confirmation email).
FD - Long APKT and NFLX