The SP500 has pulled back 3.6% from its recent high; it was just a few days ago that the financial twitter stream was telling us that we were going to go straight up until year end. Many reasons were given, no rate cut, money on the sidelines, managers underperforming that need to catch up, high short interest, seasonality etc…Now after this pullback it seems like everyone forgot all the positives that they were mentioning just a few days ago, they are still there.
What we want to do now is perhaps take advantage of this natural retracement after the big move in October, to look for stocks that reacted well to their earnings report that have now pulled back because of the market. By well I mean a stock that gapped up over 4% due to their report. $VG, $MDR, $BLX, are some on my radar.