In reviewing my current options trades this weekend, I noticed something in one of my VMW (Vmware Inc.) charts that I thought I would use in discussing how I scan for bottoming stocks. This is when I am "down in the sub" or "down with the Titanic" looking for stock that are in the last stage of a pullback.
One of the stock scans that I run is used to find stocks that have a Stochastics reading of under 30 (among other criteria, but this is what is important for the sake of this post). Here is a recent chart of VMW showing the Stocastics readings that hit my scan and corresponding rise in stock price after the dip buyers begin to come in:
A simple strategy yielding a high probability trade opportunity. In the words of @Fibline, KISS.
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