Bottom-Fishing & Rebounds
Summaries of 6 videos on Bottom-Fishing & Rebounds, each with a one-line takeaway, key ideas and sectioned notes.
Not Buying the Dip After the Night-Session Crash: Wait for Objective Conditions, Not Feelings
After a night-session crash that at one point fell about 4000 points, the Taiwan market still closed down a sharp 1873 points, so Boss Lei is not buying the dip: foreign investors sold a net 911 億 (less than the day before), but only one of six objective conditions (oil) has been met, and he still wants foreign selling to shrink and margin forced liquidations to be fully flushed out.
A Broad Selloff Is Not Yet the Time to Buy the Dip: Margin and Foreign-Investor Conditions Are Still Unmet
Taiwan stocks sold off across the board and 100 strong stocks hit limit-down, but margin balances and the index decline are still in the orange zone, not the blue zone where historical bottoms have formed, so host Boss Lei urges against rushing to buy the dip: foreigners have net sold nearly 1.5 trillion since October, and he wants conditions such as a single-day margin drop of more than 100億 and foreigners turning to net buying of 500億.
Beaten-Down Stocks: Rebound Trading on Heavy Volume at the Lows, Extreme Negative Deviation and a Staged SOP
A beaten-down stock does not automatically rebound; it is only worth a rebound trade once it shows heavy volume at the lows (volume at least 2 times its 20-day average), because that means selling pressure is exhausted and someone is absorbing shares, but the rebound usually lasts only 2 days, so take it and get out.
Betting on Volatility with Small Money in Warrants: Earnings-Call Timing and a Five-Phrase Checklist for Picking Warrants
Small-money warrant traders should target stocks likely to swing hard around earnings calls and pick warrants with a five-phrase checklist: big-swinging underlying, small and stable implied volatility, tight bid-ask spread, ample bid size, high leverage. Gains and losses are asymmetric in the buyer's favor, but warrants with too little leverage or too-high implied volatility only lose money.
Granville's Eight Rules, Xiaoge Edition: Telling a Rebound from a Recovery, Combined with Major Player Flows and Volume
Granville's eight rules are only reliable when combined with major players' net buying/selling and trading volume, because the monthly moving average's direction decides whether it is a rebound to grab and run from quickly or a recovery you can add to and hold for a swing, and relying on moving-average buy points alone may mean buying right where major players are unloading.
How to Trade, and Escape, a Rebound After a Sharp Selloff, and What to Do If You're Trapped
A high-volume rebound after a sharp drop is a chance to escape and cut risk, and the only sign of a bottom is trading volume; buying floor stocks that crashed on heavy volume shrinks losses, whereas averaging down or doing nothing does not.