It's important to remember that despite the somewhat ominous tone that the market's taking short-term, there are potential upside setups to be had. Such is the case with defense contracting giant Lockheed Martin (LMT - Get Report) right now. Following a large rally in shares this stock is consolidating in a tight range -- one that provides a solid "if/then scenario" for traders.
If shares break above upside resistance, it's time to buy shares. Otherwise, a break below support makes LMT another prospective short play. Either way, when a break does occur, the ideal stop-loss position is inside the channel around $80.
Twitter and become a fan on Facebook. At the time of publication, author had no positions in stocks mentioned. Jonas Elmerraji, based out of Baltimore, is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia , and has been featured in Investor's Business Daily , in Consumer's Digest and on MSNBC.com.