Rebound Ticker Checklist…

Hey 5-Star Trader,

Ticker’s prices fluctuate daily and it’s not uncommon for some to experience extreme action to the downside. However, of those tickers, a select few end up rallying and making incredible rebounds. It should be every trader’s goal to identify stocks of these moves before they happen so they can capitalize on the opportunity, but what “clues” should we be looking for?

Below is my checklist when trying to identify the next rebound ticker… 

  1. High Short Interest
    Stocks with high short interest often make explosive moves. If you catch it at just the right time, you could get in right before a huge move to the upside.
  2. Float
    Float is a term that refers to the number of shares a company has available for people to trade. Typically, if a stock has 20% or more float, I will keep them on my radar.
  3. Hot Sectors
    Consider hot sectors. Is the ticker you are looking at on a down day but within a hot sector? If yes, they could experience an upward move depending on market behavior.
  4. Price
    If stocks are cheap it could be an incentive for new momentum traders to pile in, thus driving up the price.
  5. Media Coverage
    Medica coverage is another way to drive new buyers into buying a stock. Keep an eye out for companies that are getting covered in the news because it could be your signal to get in before everyone else. However, you should consider what kind of coverage a company is receiving. If it is bad press, the stock could fall even further.
  6. IPOs
    New initial public offerings (IPO) are some of the best rebound stocks to get involved in. They are heavily shorted and then all of a sudden, some news can come out, and BAM! They are shooting upward.

It’s important to note that my checklist encompasses the traits I look for when trying to identify a rebound ticker, but a ticker does not have to have all these traits in order for me to be interested. A ticker with two or three of these traits will typically pique my interest!

Up Next...

When a Ticker Makes Targets

Hey Traders! On Monday, I sent you a video about my short-term setup in Tesla, along with my $250 price target. You can check it out in the Tweet below… Since then, the squeezes I noted fired to the long side, and Tesla traded directly to my Fibonacci price target at the 1.272% extension level. … Read more

Read More

A Trade Setup in TSLA

Good morning, traders! The Nasdaq futures are choppy at 16,000 after making quite the run. So, what’s next? Looking for the next round of setups, of course! When tickers and indexes get sticky, squeezes will start to consolidate. Those squeezes generally occur on the lower time frames first. When those squeezes fire, they can either … Read more

Read More

The Microsoft Effect

Hey traders! Microsoft made a new, all-time high yesterday and may very well take the Nasdaq along for the ride. What is next to come in Microsoft, the Nasdaq, and more? Check out my video update below:

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now