Deron Wagner has found it quite possible to simultaneously profit from both long and short positions, particularly when the broad market is indecisive or in transition. The key is to make sure the long position is showing great relative strength, and the short position is showing clear relative weakness.

The price congestion at the 610 level on the chart for the Russell 2000 (RUT) suggests that there is a likelihood of another leg down to the 585 level in the intermediate term.

What a marvelous recovery. But there are so many unresolved mysteries. GDP growth over 5%, but mysteriously no jobs and no rally in the housing market.

Tuesday was a very good follow-up to Monday's recovery session, as the indices extended their snapback rally from deeply oversold conditions and made some significant progress.

The rally in the PowerShares QQQ (QQQQ) since last Friday's low at 42.63 has recovered about 20% of the entire down move.

Dr. Adrian Manz analyzes the major markets, stock sectors, and individual stocks for February 2.

Dr. Julie Peterson-Manz reviews the Around The Horn stock action for February 1, and presents trade ideas that still have the possibility of triggering for February 2.

Dave Landry takes a one-minute look at the stock market in his video for February 2.

In the near-term, Deron Wagner's general plan is to sell long positions into strength, locking in gains as the major indices run into overhead resistance.