The markets have moved into severely oversold territory, but I am not convinced that the end is in sight. Economic and corporate news continues to be bad, and until something changes, I’ll stick to believing what I see. On Monday, Bowater Inc (BOW) will be on the watch list for an Infield Fly reversal move lower. The stock looks extended on the heels of several Fast Ball moves higher and strong selling at recent highs on Friday.

FPL Group (FPL) is a potential Sinker setup. If the stock retests the high range of Friday’s trading (the tail on the daily chart), I will look to short FPL on a move back down through the Friday close.

Bowater Inc


FPL Group


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Adrian Manz is the author of Around The Horn: A Trader's Guide To Consistently Scoring In The Markets and is co-founder of TraderInsight.com. Email him at adrian@traderinsight.com.