1. Unless you believe we are entering a decline similar to what was endured in 2008, this is not the time to be aggressively short stocks.
That said, if you're a short-term trader and you're looking for potential short-side plays, consider looking at names like Citrix Systems (CTXS) and Alaska Air (ALK). Or maybe something like Sabre (SABR) or Activision Blizzard (ATVI).
In my view, this is not the time to be focusing on genuinely weak stocks. What we want to do is search for those names that have broken beneath shorter-timeframe Moving Averages, but still trading above most higher-timeframe MAs. Additionally, if you are entering new short positions after the broad-market decline over the past two sessions, you want to avoid selling stocks already grossly oversold. The stocks listed above, while still in higher-timeframe bull trends, have begun to weaken on a short timeframe. If you believe we have another day or two of weakness ahead of us, those are the types of names I'd add to my day-trading watchlist.
As far as long ideas are concerned, the market weakened in fairly dramatic fashion last week. So any new longs should be handled with care. While I'm not particularly bullish over a higher timeframe, I do see a number of stocks worth pursuing for shorter-term bounces.
A few financials on my list are Morgan Stanley (MS), JPMorgan Chase (JPM) and Bank of America (BAC).
Morgan Stanley was hammered on Thursday and Friday last week, but it's quickly approaching what I believe is a worthwhile area to stalk a short-term long. Check out the support between $33.40 and $33.80, and note how oversold the Relative Strength Index currently is.
2. JPMorgan is within spitting distance of its rising 200-day Moving Average and quickly approaching $62 to $63 price support. A higher-timeframe uptrend, accompanied by an oversold RSI, makes this a reasonable bounce candidate.
3. Bank of America has a messier chart than both MS and JPM, but is still worth considering. Despite trading in a relatively horizontal pattern since March 2014, I'm interested in buying BofA toward $15.50 trendline support.
Any trading or volume profile related questions can be posted in the comments section below, emailed to me at firstname.lastname@example.org or posted to my twitter feed @ByrneRWS