Mean Reversion Trades

Below are the stocks on my watchlist for today.  These swing set-ups become actionable to me if and only if they go through the previous day's high plus a few cents.  That simple rule will and should narrow down the list significantly. The stop-loss for most of these set-ups is either yesterday's low or a 3-day low.  What we are looking for is to jump aboard of a possible new 3-5 day move on the stock.

In certain market environments mean reversion works better than you typical cookie cutter breakout, this is why it's important to trade more than one set up.  Mean reversion to me does not mean pick a stock that's down multiple days in a row and try to find the bottom.  I look for stocks down multiple days in a row and wait until they turn green, then I consider jumping aboard, the red to green action is your trigger.  CYBR and GS are two recent examples.

JNUG, SXC, IO, FSTR, ECA, CNX, AUY, CENX, JOY, WLB, EC, CPA, RRTS, VNCE, DDS, DBD, GME, WTW, AR, CLF, ARCO, GMLP, RGLD, SAVE, QRVO, SXCP.

The down opening will probably eliminate 75% or more of this list, remember, the trigger is ONLY AND ONLY IF THEY GO THROUGH yesterday's high.

My opinion and outlook are subject to change as new information comes in. 

Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.