Jeff Cooper is one of the few stock writers with real value. His books, "Hit and Run Trading" and "Hit and Run Trading II" have many fine patterns that often work for day trades or for setups for month trades. He used to write a newsletter (I hope he starts another one) where I read about his concept of "second mouse gets the cheese". This pattern has great applicability in a market like this one, where trillions of $$$ in beefer trading funds await to hit any breakout. Yesterday seemed like that to me - the S&P break out up was hit hard by the perma-bears and trading beefers. (For explanation of "beefer" see my first post in January 14, 2007.) There was no clear fundamental news indicating a change in the economic trajectory.
So the first mouse gets hit by the trap & the second mouse gets the cheese. Analogously, the first break buyers get hammered by the beefers and the second break sticks. Time will tell. So far, nothing has changed in my outlook.