EverHint – Dip & Bounce Mean Reversion Signals for Jan 23, 2026 – Technology Leads with 16 Setups
What This Signal Is (Quick)
This strategy identifies stocks that experienced a controlled intraday flush followed by a same-day bounce, creating a classic "dip & bounce" pattern:
- Signal Type (DIP_BOUNCE_LONG): Buy-side signals only (v1)
- Stock dipped meaningfully below previous day's close during today's session
- Stock bounced off the intraday low and closed well above it
- Day often finishes red or flat, but with a clear lower tail/wick showing buyers stepped in
Pattern Requirements:
- Dip vs Previous Close: Today's low trades significantly below yesterday's close (≥1.5% dip)
- Bounce Off Low: Price recovers intraday and closes meaningfully above the session low (≥0.75% bounce)
- Net Result: Stock still often down or flat for the day (-2.5% to +0.5%), but with visible buying pressure
Key Characteristics:
- Mean reversion focus (not trend following)
- Targets 1-3 day bounce plays or short-term swing trades
- Looks for "flush then absorb" patterns with controlled selloffs
- Complements trend-following strategies (EMA crossovers) by catching short-term dips
Best For:
- Traders who like buying controlled dips with visible buying pressure
- Scanning for intraday flush patterns across the whole market
- Manually picking 1-2 best setups for short-term trades
Key Criteria:
-
Minimum dip: 3.3% (open to intraday low)
-
Minimum bounce: 1.0% from low
-
Net change range: -2.0% to +0.3%
-
Price above SMA(200)
-
Minimum ADV: $40M
Holding Period: 1-5 days
Risk Level: Medium
How We Ranked Today
Ranked by dip magnitude (highest first)
📊 Dip & Bounce Mean Reversion Signals (Top 15 of 27 total)
Ranked by dip_percent:
| Rank | Ticker | Company | Sector | Last ($) | Dip % | Bounce % | Net % | RSI14 | Insider Net | Days → Earnings | Est EPS | Mkt Cap ($B) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | AA | Alcoa Corporation | Basic Materials | 62.23 | 8.9% | 8.2% | -1.41% | 61.3 | — | 81 | $0.00 | 16.1 |
| 2 | CELC | Celcuity Inc. | Healthcare | 110.06 | 7.0% | 6.9% | -0.64% | 59.8 | — | 66 | $7.13 | 5.1 |
| 3 | INOD | Innodata Inc. | Technology | 59.52 | 5.9% | 4.2% | -1.96% | 59.5 | $-3.0M | 27 | $1.25 | 1.9 |
| 4 | BE | Bloom Energy Corporation | Industrials | 144.88 | 5.4% | 5.2% | -0.52% | 81.1 | $-17.9M | 34 | $4.74 | 34.3 |
| 5 | LQDA | Liquidia Corporation | Healthcare | 40.59 | 5.2% | 4.3% | -1.17% | 76.8 | $-7.9M | 54 | $4.30 | 3.5 |
| 6 | PONY | Pony AI Inc. | Technology | 16.44 | 5.2% | 4.6% | -0.84% | 52.6 | — | 60 | $0.51 | 6.3 |
| 7 | TSEM | Tower Semiconductor Ltd. | Technology | 128.62 | 4.6% | 3.7% | -1.05% | 59.5 | — | 17 | $4.46 | 14.4 |
| 8 | NVMI | Nova Ltd. | Technology | 460.91 | 4.5% | 4.6% | -0.10% | 88.2 | — | 20 | $13.00 | 13.7 |
| 9 | RKT | Rocket Companies, Inc. | Financial Services | 21.07 | 4.4% | 2.6% | -2.00% | 57.6 | $-196K | 34 | $1.26 | 59.5 |
| 10 | STX | Seagate Technology Hol... | Technology | 346.10 | 4.3% | 4.3% | -0.12% | 67.2 | $-423K | — | $31.14 | 73.9 |
| 11 | FN | Fabrinet | Technology | 466.91 | 4.2% | 3.7% | -0.74% | 46.9 | $-4.7M | 10 | $18.87 | 16.7 |
| 12 | CIEN | Ciena Corporation | Technology | 229.14 | 4.1% | 3.9% | -0.39% | 43.3 | $-7.5M | 46 | $8.52 | 32.3 |
| 13 | AVAV | AeroVironment, Inc. | Industrials | 307.75 | 3.8% | 2.6% | -1.36% | 60.7 | $-367K | 39 | $8.95 | 15.4 |
| 14 | LYFT | Lyft, Inc. | Technology | 17.90 | 3.8% | 2.2% | -1.65% | 30.5 | — | 18 | $1.05 | 7.1 |
| 15 | IMNM | Immunome, Inc. | Healthcare | 25.87 | 3.8% | 4.1% | 0.19% | 75.2 | $+454K | 54 | $0.11 | 2.4 |
Field Notes
Sector concentration: Technology (16), Healthcare (4), Consumer Cyclical (3)
Average metrics: 4.3% dip, 3.6% bounce. V-shaped recoveries suggest buying pressure at lows.
Insider selling: AVAV (AeroVironment, Inc., $-367K), CIEN (Ciena Corporation, $-7.5M), LQDA (Liquidia Corporation, $-7.9M)
Insider buying: IMNM (Immunome, Inc., $+454K)
Near-term earnings: SANM (Sanmina Corporation) report within 7 days. Higher volatility risk.
Data coverage: 55.6% insider, 3.7% congressional (1 older/1y), 96.3% earnings, 100.0% analyst, 22.2% news
Congressional Activity
STX (Seagate Technology Holdings PLC) 🔴 Bearish (1y)
- 1 sale by 1 member
- Top seller: Hou. Kevin Hern (OK) - 1 transaction ($15,001 - $50,000)
Recent Headlines
AA (Alcoa Corporation)
- Alcoa (NYSE:AA) Shares Gap Down – Should You Sell? (source)
- Alcoa Q4 Earnings Call Highlights (source)
- Alcoa Earnings Send Shares Lower—Buy the Dip or Wait? (source)
- Alcoa vs. Ryerson: Which Aluminum Stock Should You Bet On? (source)
- Alcoa Corporation (AA) Q4 2025 Earnings Call Transcript (source)
- Here's What Key Metrics Tell Us About Alcoa (AA) Q4 Earnings (source)
- Alcoa Posts Higher Profit On Alumina, Aluminum Sales Gains (source)
- Watch CNBC's exclusive interview with Alcoa CEO William Oplinger ahead of investors call (source)
- Alcoa Corporation Reports Fourth Quarter and Full Year 2025 Results (source)
- 3 Momentum Anomaly Stocks to Buy as Geopolitical Risks Drag Markets (source)
STX (Seagate Technology Holdings PLC)
- Seagate Technology Holdings PLC $STX Stock Holdings Cut by Donoghue Forlines LLC (source)
- Are Data Storage Stocks in a Bubble or Should You Get in Now? (source)
- Dow Jones Today: Major Indexes Waver as AI Stock Rally Cools (source)
- STX & WDC Gain Analyst Support Amid Surging Memory Chip Rally (source)
- Deroy & Devereaux Private Investment Counsel Inc. Grows Position in Seagate Technology Holdings PLC $STX (source)
Market Context
The broader market shows a mixed performance with the S&P 500 edging up 0.11%, Nasdaq advancing 0.26%, and Dow Jones slipping 0.34%, reflecting selective strength amid underlying caution. The VIX's 2.61% rise to 16.09 signals moderately elevated volatility, which can amplify intraday swings ideal for dip bounce strategies. These conditions foster opportunities for quick rebounds from pullbacks, as heightened volatility often leads to oversold bounces in resilient areas, though traders should watch for whipsaws in less stable segments.
Overall trend direction leans cautiously bullish, buoyed by risk appetite in growth-oriented pockets, as evidenced by Nasdaq's relative outperformance. This supports dip bounce plays by encouraging buyers to step in on temporary dips, particularly with 27 signals firing across the board. However, the Dow's decline hints at rotation away from value areas, tempering broad participation and raising the risk of failed bounces if sentiment sours.
Technology's dominance as the top sector aligns well with dip bounce dynamics, drawing flows amid the Nasdaq's gains despite rising VIX. Sector rotation toward tech suggests sustained risk appetite there, enhancing rebound potential on dips, while broader indices' divergence underscores the need for selective entries to navigate volatility-driven rotations.
⚠️ Extended Non-Trading Period Alert
Important: The next 2 days (Saturday, January 24 through Sunday, January 25) are non-trading days (weekend/holiday).
What this means:
- Markets will not reopen until Monday, January 26
- News and events occurring over this extended non-trading period may significantly influence market sentiment
- Monitor news flow closely during this period
- Be prepared for potential gaps or increased volatility when markets reopen
- Earnings announcements, geopolitical events, or major news during this period can lead to significant price movements at the open
- Consider adjusting position sizes or using protective stops given the extended gap risk
Vlad's Take (EverHint)
Today's signals: Strong sector concentration in Technology (16 signals) suggests sector-specific rotation. 1 signal with insider buying adds conviction. 14 signals showing insider selling warrant caution. Maximum dip of 8.9% offers meaningful entry discount.
Trading tips for this strategy:
- Entry timing: Consider entering on next-day weakness or at previous day's close level
- Position sizing: Start small (1-2% of portfolio per signal)
- Stop loss: Below today's low (tight stops for mean reversion)
- Take profit: 3-5% bounce target, or previous day's high
- Time stop: Exit if no bounce in 1-3 days
Risk warning: Mean reversion can fail in strong downtrends - check broader market context
Sharing Call-to-Action
💡 If you found this useful, a quick like, share, or subscribe keeps EverHint moving forward.
Independent, data-driven signals.
No hype. No promotions. Just experimental market research from EverHint.
This is not financial advice. Do your own due diligence.
See https://www.everhint.com/disclaimer/ and https://www.everhint.com/faqs/