Yearning for the Chase

Equities are largely shaking off another bout of weakness in crude oil the morning, as the large banks like Morgan Stanley and beaten-down problem stocks like GE are rallying nicely, perhaps signaling some type of reprieve into the FOMC tomorrow afternoon. Still, the major averages are off their session highs as I write this, with many traders thinking to themselves, "Here we go, again!" in terms of another potential fade to red. 

That said, if bulls can avoid a total fade today and sustain a respectable bounce it may very well keep bears on their toes due to how negative sentiment seems to have become in the last day or two. By now, "Main Street" seems to know that this has been a rough December for the stock market, and talk of a bear market and/or recession is becoming increasingly ubiquitous. From a contrarian standpoint, that seems to be leaning more bullish for equities. 

But beyond sentiment, if banks like GS and MS can sustain a relief rally beyond this morning, it should buy bulls some time at least into Christmas if not into the first week of 2019. 

On that note, if we do revert to a more standard holiday trading atmosphere I have my eye on quick-hitting long ideas which are beaten-down and heavily-shorted, even if only for day-trades at times. 

One such example would be Fitbit, updated below on its daily timeframe. FIT remains a very heavily-shorted stock. As one of our Members noted, FIT filled a huge open gap from Halloween, below, and is now finding some buyers. If the market does enjoy more holiday cheer for bulls into the holidays, I would eye this name for a quick long squeeze.