Quick Bounce Plays

If you are looking for some (quick) support buys here, a good algorithm screen to have, courtesy of The PPT, is one I made called “12631 Quick Bounce Plays.”

In the screen, I am looking to isolate stocks with positive daily Hybrid PPT scores, but negative weekly ones.

Thus, they are ripe for a quick bounce as the momentum seems to be turning, if only for a bit. I also screen for PPT Relative Strength scores, as well as volume and % from 50 day moving average.

Members please click here to view and save the screen

Here are the readings as of Monday’s close. Remember, we are talking about short-term flips here, not high quality, multi-week swings. Keep those stop-losses in place.

(Click on image to enlarge)

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If the market bounces further on Tuesday, I like Del Frisco’s as a long idea. We have been on this steakhouse chain for a while now due to its relative strength. The first daily chart shows an orderly pullback of late, attempting to resolve higher.  I suggest a stop-loss below $26.

And on the short side, I favor TIF into weakness below $84, as this is yet another consumer play under pressure. The second daily chart shows a descending triangle pattern.

Drop me your top tickers overnight.

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If you enjoy my blog posts and videos, then I would encourage you to please click on this 12631 hyperlink for more details about joining our great team of traders at a very reasonable price. 12631 is a trading service which @RaginCajun and I direct here at iBankCoin.

Enjoy tonight’s video, and enjoy your evening. 

Direct Vimeo Link Click Here

The correction appears to be reasserting itself this afternoon.

It is often said that bearish tapes tend to open strong and finish weak. We sure have seen a good deal of that type of price action in recent weeks.

I took off another chunk of my UNP short inside 12631 earlier to lock in gains, mainly because earnings are later this week.

However, my thesis that the holdouts in this market will succumb to the selling in the leaders remains intact, namely in the semis, financials, transports, and Dow Industrials. You can run, but you usually cannot hide in a real correction, which we have not seen since 2012, at least.

More on my video market recap after the bell.

See you there.

Nice bounce this morning.

But, now, with the biotechs flipping red again, and still not punching through their sector ETF daily chart’s lower Bollinger Band, it is hard to get behind any meaningful rally at this point. Biotechs are also below a (still-rising) 200-day moving average, where bad things can happen.

In addition, the small caps are barely hanging onto green.

Leaders still lead, in both directions.

Short Ideas: COH F GMCR

Long ideas: FANG MTDR TRGP in the energy patch.

Let’s see how they close it.

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Hat Tip to 12631 member “Piesangboer” for this brief but instructive video.