One of the indicators that I rely on most is the number of buys and sells that my daily screens print out. Today there are more buys than I've seen in a few weeks. But before I go and take out a second mortgage on my house, max out my credit cards and leverage everything on the market, let's hold on a second.

A valuable lesson that I've learned over the years is that it could become very expensive grabbing for the first and last dime on the table. So let's not jump in with both feet, but instead we will test the waters and trust the market action.

Regeneron Pharmaceuticals (REGN) bottomed in August while the broader markets were drifting down. Buyers have steadily showed interest and have been there at every minor pullback. Personally, that's exactly what I look for.

Again, as I have mentioned several times, this is a sideways market and you must use stops to protect your profits and principle. There have been several times recently that the market seemed to be ready to explode only to sell off and visa versa.

Tom Incorvia is a swing trader with 18 years of experience in the financial markets.  E-mail him at tincorvia@gmail.com.