What a horrific week it has been for the bulls.
Every time you think the market is going to bounce it doesn’t. Today however, there has been some solid price action for the bulls in that they recovered 1200 points off the overnight lows on the Dow, and currently sit at break even. We are likely to see the most volume since Brexit today on SPX, as well.
The fact that the market isn’t trading where it was overnight is a huge accomplishment for the bulls and points to the possibility that a bottom may be getting put in.
When the market does bounce, it will be hard and fast, and you’ll want to know ahead of time which stocks you need to get into.
That is why I have put together my list of long setups to watch going forward. These are pure bounce plays, and you’ll want to make sure that if the bounce does not stick, that you are not becoming long-term bag holders of the stock.
There’s a lot of risk out there, the best thing you can do right now is to keep more cash in the portfolio, until the market bottoms and begins moving higher again.
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