If the market bounces, watch these 5 stocks

The market has been ugly lately, and today, the Nasdaq broke below the
critical support of 2100 (shocking, but not surprising giving the strength it
had coming down the past three days. Oil prices also fell from $67 to about $61
today. (see my past post regarding a potential oil fall to $56/barrel). Despite
the relief of oil prices, the market kept falling, which is a very bearish sign.
Most stocks are oversold, but not stable at the moment so there aren’t many buy
opportunities with low risk like before. And if you want to short some stocks,
it may be a little late because a slight pullback is soon to happen. Perhaps by
next week we might see an opportunity to short at better prices for some stocks.
Let’s not bottomfish at this point and let’s obey the current direction (it’s
pretty hard to lose if you plan according to where the stocks and market is
going). Remember that the game is fairly simple: you are rewarded for being able
to identify the strength and direction of the market.

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