More buying needed | stockbee


More buying needed

Market had a dead cat kind 3 day bounce after big selling  days. Fora  enduring bottom lot more buying pressure is needed, which we have not seen so far.

We had 519, 405 and 1400 selling days on breadth . That is huge selling . Comparatively the buying days were muted.

If the market is indeed  going to have no  more downside then we need to see dramatic improvement in buying and breadth. Absent that we might get just a range bound action that might fail or later after few weeks attract buyers.

As usually happens during this periods , the most beaten down stocks and sector bounced back first. The stocks with momentum had very selective breakouts and that is where I would like to see setups develop and breakout stick.

A decent setup that worked recently was TANH for 3 day swing trade. The stock held up well near high  during the market correction. In 3 days it made around 43% move. These kind of momentum  bursts need to proliferate for healthy uptrend.

SPWH is another stock that held up well during correction and is now breaking out  on earnings. Volume was big on it and float is relatively small 18.4 million.

Some other stocks showing decent breakouts on Friday are:


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