The biggest rallies happen in corrective or bear markets. They are nice, but often temporary. Stay nimble, my Trader friends.
— Sean McLaughlin 📈 (@chicagosean) October 16, 2018
I posted this on twitter today as the latest round of dip buyers were tripping all over themselves to buy up any and all perceived bargains being offered by Mr. Market. While the cumulative bounce for the past three trading days has been impressive, I've traded through too many corrections and bear markets to be tricked this easily into thinking the storm has fully passed.
Instead, I'm welcoming bounces like this because it more easily reveals the weakest names that are struggling to rebound. The stocks that haven't bounced or are struggling in relative terms to rise with their brethren, these are the names we want to press into on the short side. They are the ones likely to lead the carnage on the next leg down.
Next up on our target list: Intel $INTC.
You need to have a subscription to access this content in full.
Log in or
subscribe
