3:00 LOOK

The markets are drifting lower here as the initial gap open was sold and the internals quickly flipped into red dye. My take is that it is probably to late to short and to soon to buy. My game plan is now to wait until more signals line up. I am anticipating the Volatility Sisters will again become overbought on an additional market selloff.

Earlier this morning, Revshark on realmoney.com posted his opinion that buying strength was more profitable than buying weakness. I am planning a post to dispute Revsharks "buy strength" mantra. Here is what he said:

"One of the ironic things about stocks is that quite often the ones that are going up the fastest and are closest to their highest prices may indeed by the best "values." Stocks that are in the process of being discovered can go up substantially as the market begins to value them correctly. It depend where they are starting from. On the other hand, a stock that is down sharply from its high may look like a bargain but really just be in the process of being priced more correctly. If we expect it to bounce back, we will be disappointed.

The key is to not think about stocks like they are merchandise on the shelves of a store. Just because they are marked down doesn't mean they are a good deal, and just because they aren't on sale, doesn't mean they aren't a steal. "