Reading Assignments:

• TARP head confirms substantial pay cuts looming
• AT&T profit dips but wireless results strong
• McDonald’s sees profit climb 6 pct
• Dow Chemical revenues slide; company cuts spending

Pre-Market:

Yesterday, it looked like my market candle scans were going to prove wrong in forecasting a down day until analyst Dick Bove put coals in the stockings by downgrading Wells Fargo to a sell. At about Three PM, the bottom dropped out of the market after the downgrade. Thanks Dick for making me look like a genius.

Today, the market candle scans are just about even, with 45 bullish and 48 bearish candles — almost 50/50, and not enough to indicate any strength in the market direction either way. Futures have turned slightly up this morning on earnings news from McDonald’s, after a down Asia overnight and down Europe/African futures.

My candle pattern index is bearish,and so are the McClellan Oscillators, so we’ll keep an eye on that.

I had one play I was considering, GRO, but I’m holding off on that — GRO is a wacky stock whose action is hard to predict, though it does have some large runs.

Current holdings: JADE is up big pre-market, and it looks like I may hit my target sell on 1/2 position of 3.67 (+14%) today.

I’m deep in the red on MPG I bought last week, will consider ditching for a loss.

Down slightly in BEE and WAVE, not concerned with those. BEST performed best yesterday and looks like a good move.

No more positions today unless something springs up on a moments notice.