This week was all about going against conventional wisdom. The week’s best-performing stocks were the ones that were down the most up, which is typical action in almost every initial bounce after a severe correction.

You can clearly see that in the best-performing stocks this past week in the Russell 3000, take a look at the weekly change and their one and three-month change.

It’s very simple; FIFO- first in, first out. HHHB–hardest hit, hardest bounce.  Short-term speculators should go to what is working now or what works best during the current market environment and not what conventional wisdom says. But like Van Tharp said; We don’t trade the markets, we trade our beliefs about the market. Sometimes we have to check our beliefs and make sure they are correct by looking at what works best within our timeframe.

Here a few of the names that we took advantage of this week, all beaten up names that were ripe for a bounce.

$ATI down -74%, prints an inside day, triggered once it got above the inside day high.

$LADR down-80%, prints an inside, triggered through inside day high.

$RC down -80%, prints an inside day, triggered through inside day candle high.

$MPC down -74%, prints an inside day, triggered once it got above the inside day candle high.

It seems like the Corona plays catch a bid during negative market days; $APT down multiple days in a row, trigger once it changed that pattern, the target is always up, and you sell some on the way up

$INO another Coronavirus play

  • The scan was simple; look at all stocks above X price with X volume and start by looking at all the worst-performing stocks first. At times we put so may filters on stocks (above a certain price, sales, eps, etc) that we fail to see the entire universe and what actually works best.
  • The percentage gains and dollar gains are worth the same regardless if they come from a stock that is trading near all-time highs, 52-week highs, all-time lows, 52-week lows, above or below averages.

You can find stocks before the breakout here (managed assets)  or DIY  at the trading room

You can view over 100 shared trades here




This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.