Stocks down 25% plus and V recoveries

The market is in correction mode for last few weeks. It has been a slow breadth deterioration kind of situation.

A select few stocks have still are rallying but it is really selective rally. Some large cap stocks are still holding up well and large caps indexes have hardly corrected.

The T2108 indicator is approaching 20 levels. In bull markets most of the time such low levels lead to a bounce. The bounce may not sustain itself . If we see dramatic improvement in breadth on bounce then that will be good sign.

It is not an ideal environment for momentum burst kind of setups. But things can improve

Stocks down 25% plus in a month
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GOMO
LEJU
CLV
LPCN
NM
PIR
CTCM
CIG
CLF
PGN
AUY
SFXE
AU
VLCCF
VNET
SDRL
HYGS
RPRX
MXL
BIOF
OMN
NADL
SSRI
VHC
SALT
TNXP
WPRT
HGSH
GTN
SWHC
AKS
CVGI
BGC
CONN
FRM
WG
GTAT
KNDI
VNOM
TRS
EOX
MOV
EOPN
CMCM
BCRX
ADHD
CRK
EXXI
RTRX
JMEI
PEIX
XONE
USLV
CVEO
BBSI
JRJC
CRR
QIHU

These stocks are down 25% plus in last one month. Keep an eye on them.

If you study the last few years bounces, you will see that beaten down stocks made the biggest moves coming out of such market corrections. V shaped recovering in stocks are common in this market.

NFLX and CMG kind V shaped vigorous rallies have been common character seen in recent times. Something to keep an eye on if we start getting another V shaped bounce.