I suppose it is easy to throw a dart at the market when we see an oversold squeeze rally. However, corrective markets are notorious for getting inside traders’ heads, pushing them in the direction of drifting away from their discipline. I try hold myself to the golden standard in terms of looking for the highest probability setups. If the bulls can follow-through on Monday’s rally to the upside, I think Dolby and Middleby represent two excellent, under the radar quality long setups for quick (1-2 day, at first, maybe more) swing trades. Their relative strength in recent weeks has been astonishing, and I think you can expect a bit less herky-jerky action in these names than some beaten down laggard that will drive you nuts with crazy intraday swings.
As I alluded to in my video recap earlier, it is impossible to judge whether the market has bottomed from one day’s worth of action. Playing defense with your capital is still the top priority, but being prepared with a list of stocks acting well is right up there too.
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EXPE looks pretty tasty too.
A gap n’ go trade. Basing nicely after the move, but I always fear the gap retrace-fill. Don’t know the reason for the big move, but a quick fact check will tell.