Panic should result in a bounce | stockbee

11/12/2007

Panic should result in a bounce

I see a hint of panic after returning from holiday. The narrow set of stocks leading the rally are finally showing stress and in many cases breaking down. However such oversold conditions have the potential for a counter trend bounce. Under current circumstances capital preservation mode is preferred mode.

Once the volatility subsides many of the stocks in 100% plus universe will offer long opportunities. Most of the earnings breakouts have pulled back and once the market clouds lift, these stocks will bounce back.

9 comments:

Mike said...

Pradeep, why is it every time you leave the country the market tanks?

All one needs to do is invest when you are here and sell on the news you are leaving! No need for any of your blogs even lol

Mike said...

Why would any long invest in this market? it looks like the perfect storm. Recession is a good possibily it seems. Time to go to cash if you are in investor and not a trader I am guessing.

SANTOSH SHINDE said...

Pradeep,

Belated "Subh Dipawali".

christmasfern said...

Heres what i got as some good buy possibilites for buying the pullback after the earnings episodic pivot:

UTHR
STRN
PRO
FLS
RBN
GSB
MA
PRGO
PSEM

I think UTHR is a real standout here. Also like STRN, PRO quite a lot.

My watchlist includes some others but in light of seeing the market wacking here, i think these are the cream.

Pradeep Bonde said...

Medical stocks will be in focus in bounce. Some of the stocks in your list will bounce back, but focus will be on medical and health related sector.

leicsky said...

I have some NRM stocks,should I sell it now or hold it?

Woodshedder said...

Pradeep, why medical and health in focus?

Pradeep Bonde said...

Because they are moving up in relative strength.

christmasfern said...

ABAX recently broke out, one of the medicals. Holding up well in the selloff. I hadnt thought about medicals specifically but UTHR is my favorite in anycase, a biotech.