Guilty Until Proven Innocent

This last time we were this oversold was back in July 2006. Coincidentally, the Dow ended the day with a the largest gain since July. Is this just a mere coincidence or is Wall Street just painting by the numbers (i.e. setting their programs to run based on specific set of criteria)? After the large gap open, we did see some selling, but like clockwork the 11AM buy programs were put to work and they rolled over everything in their path.

When we see these oversold rallies, one of my "go-to" screens specifically finds stocks which have also provide gap reversal characteristics like the overall market. Some of more interesting reversal gaps could be found in ABM, AIXG, APFC, AZN, IBN, BUD, CRH, DCX, GOOG, HURC, IPR, OPTM, VLO, ISE, BHP, ISH, ISSC, KFI, KMX, LFC, LIHR, MBT, MFB, MTXX, NAB, NVS, OBCI, RIO, ROCM, RTLX, SINA, SNTS, SYKE, TNH, WRNC and YZC.

Needless to say, the vast majority of stocks I'm tracking are still guilty until proven innocent, just like the overall market in my humble opinion. Today is a step in the right direction and has provided a get out of jail card to those trapped, but much more strength and confirmation is needed. A whole lot more. Have a good evening!