A strong rebound is welcome after the past two weeks, but one session won’t repair the damage.
If you’re feeling the urge to make back recent losses, this is where patience matters. Oversold stocks can bounce sharply even while the broader market remains weak.
The question now is whether buyers keep showing up.
A more convincing recovery would bring sustained improvement in breadth and the rolling ratios, a stronger advance/decline ratio, fewer sharp selloffs, and more stocks reclaiming and holding their key moving averages.
A follow-through day would add evidence that the rebound has support.
For now, I’m watching how stocks behave as they rally into those moving averages. Can they hold their gains and build, or does selling return at resistance? Those tests should tell us more about the quality of this rebound.
My approach hasn’t changed from last week. I’m keeping position sizes small and testing the waters with selective, short-term trades. Overnight exposure stays minimal, and I’m only carrying positions where I have enough of a profit cushion to give the trade some room.
Keep cash available and protect your mental capital. You don’t need to catch the first bounce to take advantage of a recovery.
With that in mind, let’s go through this week’s setups and the levels I’m watching.
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This is my performance from previous years.
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High Probability Trades
Of all the tickers on my watchlist, these are my high-probability trades for the coming week.