Ryan Mallory, of SharePlanner.com, examines the bearish day in the market on Monday, but also points out that, while the market is down a significant amount, it does not mean it will stay that way. Ryan also shares a bullish watch list and recommends traders look for a few solid set-ups to take onwhen the dip buyers give the green light.
Brutal day in the market so far Monday and there has yet to be a bounce of any kind at this point.
On the TICK there has yet to even be a net +500 move at any point in the day. Quite frankly, that is hard to come by. Decliners are holding a seven-to-one advantage just about, over the advancing NYSE issues.
So yes, it is very bearish out there. But as we have seen many times this year and in years past, the bulls rarely find a dip that they don't like to try and buy. So while the market is down a significant amount—and down for the fourth straight day on SPX—it doesn't mean that it will necessarily stay this bad.
Monday's sell-off also allowed for the removal of a lot of bullish stocks that had previously been on the list below. Vetting this list Monday was fairly easy, especially when compared to recent weeks.
So check it out and when the dip buyers give the green light, then look for a few solid set-ups to take on.
Here's the bullish watch list:
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By Ryan Mallory, Founder, SharePlanner.com
