NEW YORK (Real Money) -- We've seen the oversold bounce on the euro. Although it didn't quite get to par, it did get close, which I believe is what most folks expected. If you missed the first bounce, I would not chase the euro now. It's only taken a few days, including this morning, to see more than a 4% bounce.

That isn't the time you want to be buying or hedging out against a long dollar position. Remember, it isn't as if there is an end to the announced overseas quantitative easing. While we may see another 1% to 2% on the upside for the euro, I believe it will be the short-term cap and we will begin a sideways trend with a slight downward bias.

I have a similar view on biotech. I would let this self-fulfilling, bubble-bursting prophecy play out. I say that tongue and cheek, as we just have a short-term shift in perception encouraging a little profit-taking and maybe overdue caution, also known as a reality check. Just look for opportunities in the names with proven treatments, especially if you've been burned in this group recently. The only shift thus far is in psychology, not fundamentals or need.

While the earnings lottery-ticket play on Momo  (MOMO - Get Report) did not work (it was a total failure), the stock of the China-based mobile social-media company looks like a nice reversal candidate. I favor that the stop is clear. Any close below $9.75 and there is no reason to be long.

But until then, your risk-reward looks favorable. A very quick bounce to $11 looks in play with possible follow-through up toward $11.75, maybe even $12.50. I'd like to see the eight-period relative strength indicator cross 50, but there's a nice push in the money flow index and a bullish cross in the slow stochastics while in oversold territory. A cross in the MACD would also be a big plus, but given the short-term life of this company, there isn't a lot of history to work with. Instead, I'd rather focus on the price action and the risk-reward, which now favors the long side.

Editor's Note: This article was originally published at 11 a.m. EDT on Real Money on March 23.

At the time of publication, the author was long MOMO.