It seems way too obvious to keep working but the dip buyers are hard at work on this weak open. Already a couple of the Super Momentum stocks I mentioned yesterday, IQIYI (IQ) and HUYA (HUYA) are trading sharply higher after a negative open.
I am looking to buy strong stocks on pullbacks in this sort of action. IQ is the best example but a few other on my list are Turtle Beach HEAR, Baozun (BZUN) , Sogou (SOGO) , TapImmune (TPIV) and LiveXLive (LIVX) .
The important thing is that the indices hold the early lows. If those lows do not hold, it is likely that another round of selling will take hold. What is most important is that the indices do not close near the lows of the day. A poor close will change the character of the action.
The bears are likely grumbling over these idiot dip buyers that don't seem to care about trade war headlines, but traders are more focused on doing what works rather than trying to make macro arguments. What works is buying this sort of open.
The bulls still have a lot of work to do and can't afford to let things slip intraday, but they have been rewarded continuously for buying weakness and that is what they are doing again.