Here are the stocks that fit each of the categories we are watching over the coming days. Click on symbols for charts. There are a lot of stocks, more than what would be on a normal focus list. These are being monitored, so we are not necessarily looking for entries yet.
1) get extremely oversold and near major support for bounces (rubber band setup)
I am not just looking for oversold readings here, I am looking for extremes. We are not there yet on most of these. There needs to be more selling, price nearing important support levels, and extreme readings. At that point we increase the probability of a bounce. If SPY can pullback to the 50 dma (see chart below), a bunch of these will setup.
2) stocks and sectors that are holding up well (possible rotation or new leaders)
Energy, metals, gold, silver, apparel
3) stocks that reverse off big down days intraday (hammers)
4) Select shorts
5) Pullback shorts (bounce to resistance after big drop–often was a rubber band trade)
We need to wait and see for this list. Many will come from the stocks that bounce after extreme drops. Big Drop – – -> bounce – – -> short setup if bounce on weak volume and price action
We are basically watching two levels. The first is the 20 dma at $196.25. If that breaks, the 50 dma and price action converge, between $191.60-192.50. This is the level where we will get a ton of great rubber band setups. I would love to see a pullback to this level.