Mapping the Bounce Trade

With our ratio plummeting ever closer to being oversold – 30.2% at last reading, it’s time to start evaluating which stocks might be headed for a larger short-term bounce once the market catches its footing.

We filtered 5500 stocks for higher than 10% short interest, higher than 70% fundamental score, and a technical score below 40%. This implies deeply oversold stocks with the added powder keg of high short interest. When a snap back comes, we believe these stocks should see a higher than average bounce in the near-term. Stocks with low technicals, high short interest, and high fundamentals look to be a great spot to find squeeze candidates. Read the report here.