This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

S&P 500 Oversold Bounce Is Right on Schedule, but We're Not Out of the Woods Yet

Stocks in this article: IWM PCLN QQQ SPY

"A fool may earn money, but it takes a wise man to keep it." -- Scottish proverb

NEW YORK (TheStreet) -- We saw a decent bounce today right on schedule after being very oversold and seeing a Doji bar print in the S&P 500 (SPY), Nasdaq (QQQ) and Russell 2000 (IWM) Friday.

I didn't do much today, but we did take a small trade in Priceline.com (PCLN), as it broke my buy point at $1,260. We used weekly calls and bought them for $11 and sold in tranches at $23.60, $31 and $34.

Read More: Norwegian Cruise Line CEO Outlines Earnings Beat Strategy

Some nice quick gains for sure -- but the stocks did rest a while before continuing higher by another $15. I should have held some more longer, but I can't be too greedy in this market.

I'm mostly focused on quicker trades with large profit potential at the moment, while major moves are still setting up. I can't promise those types of moves all the time like we saw in Priceline today, but real-time members will get them if I can spot them during the day.

Let's move right to the index chart.

The S&P 500 bounced well after the doji bar Friday. It is too early to tell if it's forming a bear flag or not yet, but the 50-day average at $195.17 will almost assuredly cause some resistance.

Read More: The 10 Richest States in America

This isn't a huge bounce so far, and on low volume, but we don't need a huge move to blow off the oversold reading we just had.  Even some sideways action will do it.

Still, cash is a good position -- or some quick trades. Have a great night.

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs