All the broader averages were up again today and that makes 4 out of the last 5 days. The S&P 500 was up almost 3.5%, the Dow Jones up slightly less and the Nasdaq composite close to 5%. Keep in mind that we are bouncing off multi-month lows and an oversold condition. Violent price movements are typical in these types of scenarios.

The last couple of stocks that I have mentioned have been on the long side and working out well. I'm going to even the score a little with a mention of a short.

Levitt Corporation today gapped up on the opening because of a positive earnings announcement Wednesday after the close. Unfortunately for the company, it couldn't hold its gains and for the remainder of the day sold off to finish near its lows. This is a sign that something is not right.

Levitt Corporation

Remember your stops especially in markets like this. Just last week the talk was oversold, and now it's overbought. That tells us that we are in a market that is conducive to violent swings.

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