U.S. Markets open in 6 hrs 33 mins

Traders Looking for Action

James "Rev Shark" DePorre

EXCLUSIVE OFFER: See inside Jim Cramer’s multi-million dollar charitable trust portfolio to see the stocks he thinks could be potentially HUGE winners. Click here to see his holdings for FREE.

We have some early pressure, but traders are itching for action and trying to push a few things. Apple AAPL and Facebook FB are probably the best examples of where the hot money is going, but some of the smaller-cap names like Sarepta Therapeutics SRPT are doing well also.

As I discussed in my opening post, we are extended and in need of some consolidation at this point. Of course, after a good week, the bulls want more, so they are providing some underlying bids, but if we take out the early lows, they will likely step aside.

I view this as a market for flipping rather than building positions, so I'm taking gains pretty aggressively when I have them. Mortgage plays Impac Mortgage Holdings IMH and Security National Financial SNFCA are active again. Perion Network PERI , which I mentioned a few times last week, continues to chug along.

My stock of the week is Nam Tai Electronics NTE , and that is acting well so far. This is a Chinese contract manufacturer that is rumored to have increased business from Apple. It expanded its facilities substantially and had a great third-quarter report. There is no analyst coverage, so it's a bit under the radar, but technically it is acting quite well.

I sold my ProShares UltraShort S&P 500 SDS position into the open but will consider remounting it if we take out the lows. We are right in the middle of the intraday trading range, and we'll see which way we break from here. Right now, I'm inclined to look for the early lows to be breached.