EverHint Signal — Dip & Bounce — December 17, 2025
What This Signal Is (Quick)
The Dip & Bounce Mean Reversion strategy identifies stocks that experienced a controlled intraday flush followed by a same-day bounce—classic "dip & bounce" patterns perfect for short-term trades.
How It Works:
- Stock dips meaningfully below yesterday's close during today's session (≥3.3% dip required)
- Stock bounces off the intraday low and closes well above it (≥1% bounce required)
- Day often finishes red or flat, but with a clear lower tail/wick showing buyers stepped in
- Net result typically -2% to +0.3%, but the pattern shows controlled selling with absorption
Pattern Characteristics:
- Dip %: How far below prev_close the stock traded intraday (measures flush severity)
- Bounce %: Recovery from the intraday low (measures buying pressure)
- Net Chg %: Overall day performance (often negative, but pattern matters more than result)
Best For: Traders who like buying controlled dips with visible buying pressure. These are 1-3 day bounce plays targeting mean reversion, not long-term trend following. Complements breakout strategies by catching short-term pullbacks in quality names.
This is an experimental scanner designed for educational use and back-testing.
How We Ranked Today (Reader Version)
Today's signals are ranked by dip_percent (descending)—larger dips ranked first—then by bounce_from_low_percent (descending) for ties. The logic: bigger controlled dips with strong bounces offer the best risk/reward for mean reversion trades.
We overlay:
- Insider Net (USD): Net insider buying or selling over the last 90 days (Purchases - Sales only, ignoring awards/exercises)
- Days → Earnings: Proximity to next earnings report (affects volatility and bounce potential)
- RSI(14): Momentum indicator (lower = more oversold, often better for bounce plays)
- Market Cap: Liquidity and institutional quality
Critical Context: These are controlled dips, not crashes. All signals are above their 200-day SMA (uptrends) with high liquidity ($40M+ daily volume). The flush creates a lower wick/tail, and buyers stepped in. These are NOT falling knives—they're structured mean reversion setups.
Signals are for educational use and back-testing. Always check broader market context before trading.
📈 Dip & Bounce Signals (6 Total)
| Rank | Ticker | Company | Sector | Last ($) | Dip % | Bounce % | Net Chg % | RSI(14) | Insider Net (USD) | Days → Earnings |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | QLYS | Qualys, Inc. | Technology | 141.95 | 3.97% | 2.96% | -1.13% | 50.3 | -$388,650 | 50 |
| 2 | ADMA | ADMA Biologics, Inc. | Healthcare | 18.83 | 3.91% | 2.23% | -1.77% | 45.8 | -$310,740 | 75 |
| 3 | SRRK | Scholar Rock Holding Corporation | Healthcare | 44.01 | 3.86% | 3.29% | -0.70% | 58.2 | +$12,686,886 | 71 |
| 4 | VAL | Valaris Limited | Energy | 49.63 | 3.74% | 3.03% | -0.82% | 31.9 | $0 | 63 |
| 5 | NUE | Nucor Corporation | Basic Materials | 160.69 | 3.50% | 2.62% | -0.97% | 57.5 | -$1,671,555 | 40 |
| 6 | BILL | Bill.com Holdings, Inc. | Technology | 53.27 | 3.50% | 1.84% | -1.73% | 69.2 | $0 | 50 |
Field Notes:
- Dip %: QLYS had the largest intraday flush at 3.97% below prev_close. ADMA at 3.91%, SRRK at 3.86%—all significant controlled selloffs.
- Bounce %: SRRK showed the strongest recovery at 3.29% off the low. VAL at 3.03%, QLYS at 2.96%—clear buying pressure stepped in.
- Net Chg %: All signals finished the day negative (down -0.70% to -1.77%), but the lower wicks/tails show buyers absorbed the dip. This is the pattern we want—flush then bounce, even if day closes red.
- Insider Net: SRRK is the standout with massive +$12.7M insider buying by director AKKARAJU SRINIVAS in October (purchased at $37-41 range, stock now at $44). Insider buying during dips is extremely bullish—shows conviction from those who know the company best.
- ADMA: CEO sold -$311k via routine option exercises (neutral)
- NUE: Executives sold -$1.67M (routine tax sales)
- QLYS: CEO/CFO sold -$389k (routine)
- BILL, VAL: No significant insider activity
- Days → Earnings: NUE reports soonest in 40 days (moderate catalyst potential). BILL and QLYS in 50 days. ADMA has longest runway at 75 days (lowest event risk).
- RSI(14): VAL at 31.9 is most oversold (best for bounce). ADMA at 45.8 also below neutral. BILL at 69.2 is extended but still dipped—unusual.
- Sector Rotation: 2 Healthcare (ADMA, SRRK), 2 Technology (QLYS, BILL), 1 Basic Materials (NUE), 1 Energy (VAL)—no clear sector concentration, suggesting individual stock patterns vs sector-wide flush.
Recent Headlines (Dip & Bounce Signals):
- BILL - Bill.com Holdings: Caxton Associates LLP bought new $2.79M position in Q2 (60,375 shares) per 13F filing on 12/15. Frontier Capital cut holdings by 42% (sold 516k shares) per 12/12 filing—mixed institutional signals. All directors received equity awards on 12/11 (standard board compensation, not open-market buying). Stock dipped 3.5% intraday despite new institutional interest—could be profit-taking or pre-earnings positioning with report in 50 days.
Note: Limited recent news for other tickers. Market-wide selloff on 12/17 (S&P -1.2%, Nasdaq -1.9%) likely drove most intraday dips vs company-specific catalysts. This makes these flush-and-bounce patterns more attractive—they're technical setups, not fundamentally broken stocks.
Vlad's Take (EverHint)
Market Backdrop: Today was a risk-off session—S&P 500 dropped -1.2% to 6,721, Nasdaq fell harder at -1.9% to 22,696, and the VIX spiked +7.1% to 17.62. Tech got hammered. The broader market created intraday flushes across quality names, which is exactly the environment that produces clean dip-bounce setups. When the market sells off but buyers step in at lows, you get that classic lower wick/tail pattern—our bread and butter for mean reversion.
Today's 6 signals are textbook controlled dips—not crashes, not falling knives. All above 200-day SMA, high liquidity, and clear intraday bounces off lows. The question: will they continue bouncing tomorrow and Thursday, or is this just a dead cat bounce in a broader selloff?
The SRRK Story: This is the signal of the day. Director AKKARAJU SRINIVAS bought a staggering +$12.7M worth of SRRK stock in October 2025 (purchased at $37-41 range over 3 separate days). Stock now at $44, dipped to $42.61 intraday today, and bounced to close at $44.01. Insider owns 530k shares after purchases. When a director drops $12M+ of their own money and the stock dips, that's a screaming buy signal for mean reversion. They're not selling—they're accumulating. Today's 3.86% dip with 3.29% bounce is the pattern confirming their thesis. This is the highest-conviction setup of the 6.
QLYS, ADMA, BILL: All showed insider selling (CEO/CFO routine sales, not panic dumping). This is less bullish than SRRK, but the dip-bounce patterns are still clean. QLYS had the biggest dip (3.97%) and solid 2.96% bounce. If you believe in the mean reversion thesis, this is a pure technical setup. ADMA at RSI 45.8 is oversold. BILL at RSI 69.2 is extended—be cautious, could re-test lows.
NUE: Steel name with -$1.67M insider selling (routine). Reports earnings in 40 days. Dipped 3.50%, bounced 2.62%. Steel sector is weak (China concerns, tariff noise), so this is riskier than the Healthcare/Tech names. Only trade if you believe steel is oversold and ready to bounce.
VAL: Energy play at RSI 31.9—most oversold of the group. 3.74% dip, 3.03% bounce. No insider data, but the pattern is clean. Oil rallied today (+3% on crude futures), so VAL's dip might be lagging the sector. Could catch up tomorrow if oil holds.
Trading Tips (Dip-Bounce Specific):
- Entry Timing: These closed near session highs after bouncing. If they gap down tomorrow, that's your entry (buy the re-test of today's low). If they gap up, wait for a pullback to yesterday's close level ($143.57 for QLYS, $19.17 for ADMA, etc.).
- Position Sizing: Start with 1-2% of portfolio per signal. Mean reversion can fail if market continues selling. Don't bet the farm.
- Stop Loss: Place stops below today's intraday low (tight stops). For QLYS: stop at $137.85. For SRRK: stop at $42.60. If they break today's low, the bounce thesis is invalid—exit immediately.
- Take Profit: Target 3-5% bounce from today's close, or previous day's close level. For QLYS: target $146-148 (+3-4%). For SRRK: target $45.50-46.00 (+3-5%).
- Time Stop: If no bounce within 1-3 days, exit. Mean reversion setups have short windows. Don't hold losers hoping for a recovery.
- SRRK Exception: Given the massive insider buying, I'd give SRRK more time (3-5 days) and slightly wider stop (below $42). This is a conviction play, not just a technical bounce.
Risk Warning: Mean reversion works best when the broader market stabilizes. If S&P continues dropping tomorrow (below 6,700), these bounces will likely fail. Watch the VIX—if it spikes above 20, abort the strategy and go to cash. Today's VIX at 17.62 is elevated but manageable. We're in the "caution zone," not panic zone.
Best Setups Ranked:
- SRRK - Massive insider buying + clean pattern + Healthcare sector strength
- VAL - Most oversold (RSI 31.9) + energy sector tailwind from oil rally
- QLYS - Biggest dip (3.97%) + solid bounce (2.96%) + Technology oversold
- ADMA - RSI 45.8 oversold + Healthcare sector
- NUE - Steel sector risk, but earnings catalyst in 40 days
- BILL - RSI 69.2 extended, riskiest bounce play
If I had to pick 1-2 for tomorrow: SRRK (insider conviction) and VAL (most oversold + sector tailwind). Avoid BILL unless it re-tests today's low at $52.31—too extended.
Remember: These are 1-3 day trades, not investments. Set alerts, use tight stops, and take profits quickly. Mean reversion is about capturing the bounce, not marrying the position.
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This is not financial advice. Do your own due diligence.
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