5 Oversold Stocks Due for a Rebound Before Year-End

The post-election sell-off continued on Thursday as investors considered whether a change to their year-end outlook was warranted. While we believe that there have been some fundamental changes to the investing landscape, we remain confident that the short-term selling pressure is presenting a buying opportunity for those traders willing to hunt for "deals."


These situations in the market are exactly why investors and traders alike need to be able to focus on technical measures to identify opportunities. We like to refer to it as "trading by instrument." Much like a pilot flying through cloud cover finds the need to fly according to the gauges on their dashboard, investors need to use technicals to trade when the fundamentals get cloudy.

With that in mind, we're closely watching our gauges for trading opportunities. At this time, keeping an eye out for technically oversold stocks that are still trading above their respective 100-day moving averages is a great way to find potential trade opportunities.

To give you an idea of how much that filter cuts down the market right now, of the 2,300 or so optionable stocks trading in the market, only 104 of them meet this criteria. The top 20 of those stocks (and ETFs) ordered by average trading volume are listed below.

According to our seasonality work, energy stocks often outperform the market in November, which is a nice bonus for Exxon Mobil (NYSE: XOM). This relative strength leading stock has set the stage for a year-end rally as strong seasonality is combining with increasing demand. The pullback to XOM's $88 level offers an opportunity to buy this stock before it heads back to its highs near $94, and beyond.  (more)