These eight stocks rose to the top of my nifty-50 stock list as the market began the current rally.
Into to the recent low the SPX declined 9 days in a row which is called stretching the rubber band too far. No wonder there was such big blast to the upside yesterday.
With the market down 8 days in a row, breadth turned up on 11/3 giving a buy signal for the open of 11/4 (as has been said before “buy when the market tells you, sell when the stock tells you”). From the open of 11/4 to today’s close (11/8): CLCD is up 1%; CWEI, UP 15.4%, FNSR, UP 3.4%; NFLX, UP 1.8%, NTES UP 3.5%, TBPH UP 6.4%, TWI UP 14.1%, and XRS UP 5%. Deeply oversold leads to wildly overbought in a hurry sometimes.
I think the market will have one more downside swing (for whatever reason — Trump, initial profit taking, too much up too soon) but if that swing does not rip out the recent low, we will likely be in the Santa Claus rally.
The stocks below are in my personal trading journal (not a recommendation for anyone else), with appropriate stops of course.
(right click to see a larger image)