Intraday – Bear Market Pull-In
So you are in a bear market. SPY found support and is bouncing. Well, what are the characteristics that you want in a stock, knowing the bottom can fall out any day? Well you want a stock that is above its 20 and 50 SMA. This indicates that while the market was selling off the stock was treading water or even defying gravity. Well, what else do you want? You want to know that institutions are involved in that stock. So how do we track institutions? Volume. You want to know that institutions are in there and they can’t get shares fast enough. For that, you look for a lot of volume over the past 20 days. You use “volume yesterday” and “volulme today”criteria to further know that institutions are still in there driving the stock higher. Lastly you want the stock to be strong against SPY on the shorter timeframes.