EverHint Signal — Dip & Bounce (Top 15 stocks) — January 06, 2026

What This Signal Is (Quick)

Dip & Bounce is a mean reversion strategy that identifies stocks experiencing controlled intraday flushes followed by same-day bounces—creating classic "lower tail" or "hammer" candlestick patterns.

The Pattern:

• Stock dips significantly below yesterday's close during today's session (3.3%+ drop)
• Stock bounces off the intraday low and closes well above it (1.0%+ recovery from low)
• Day often finishes red or flat (-2% to +0.3%), but with clear evidence of buying pressure stepping in

This is NOT:

• A trend-following strategy (use EMA crossovers for that)
• A "buy the crash" approach (these are controlled dips, not meltdowns)
• A long-term hold strategy (targets 1-3 day bounces)

What Makes This Signal:
These are intraday "flush then absorb" patterns where sellers exhaust themselves and buyers step in at lower prices. The stock shows weakness (dip from prev_close), recovery (bounce from low), but overall caution (often still red for the day). This creates asymmetric risk/reward for short-term traders looking to catch the bounce.

Best For:

• Traders who like buying controlled dips with visible intraday support
• 1-3 day bounce plays or short-term swing trades
• Scanning the entire market for mean reversion setups
• Manually selecting 1-2 best setups (not a spray-and-pray strategy)

This is an experimental scanner. These signals are for educational purposes and backtesting—not trade recommendations. Always do your own due diligence.

How We Ranked Today (Reader Version)

We ranked signals by dip percentage (descending)—larger dips ranked first—then by bounce percentage (descending) for ties. This prioritizes stocks that experienced the deepest intraday selloffs while still showing strong recovery.

We've also overlaid:

• Bounce %: Recovery from the intraday low (higher = stronger buying pressure)
• Net Chg %: Overall day performance (often negative or flat, showing controlled flush)
• RSI(14): Momentum indicator (lower values = more oversold conditions)
• Insider Net (USD): Net insider buying or selling over 90 days (P-S only, excluding awards/exercises)
• Days → Earnings: Time until next earnings (event risk or potential catalyst)

Important: These are controlled dips with visible buying, not crashes. We filter for stocks above their 200-day SMA and with adequate liquidity ($40M+ average daily dollar volume).

📈 Dip & Bounce Signals

We scanned 26 signals today. Here are the top 15 ranked by dip percentage (largest dips first):

Field Notes:

Largest Dips (Top 5):

• FIX (Comfort Systems USA) leads with a massive 7.71% intraday dip to $952.74, then bounced 8.65% to close at $1,035.11—actually finishing green (+0.27%). This is a textbook dip-bounce pattern with strong institutional support. HVAC/mechanical systems contractor riding AI data center build-out. Insider selling noted ($4.2M by CFO). Earnings in 44 days.
• POWL (Powell Industries) at 6.77% dip to $336.91, bounced 6.85% to $360.00 (-0.38% net). Electrical equipment for data centers and utilities. Earnings in 30 days—watch pre-earnings volatility.
• XMTR (Xometry) at 6.36% dip to $63.50, bounced 6.90% to $67.88 (+0.10% net). On-demand manufacturing platform showing resilience. Earnings in 49 days (low event risk).
• COMP (Compass) at 5.53% dip to $10.25, bounced 5.66% to $10.83 (-0.18% net). Real estate tech name with heavy insider selling ($549K by CFO). Low liquidity—trade carefully.
• BE (Bloom Energy) at 5.29% dip to $98.38, bounced 4.72% to $103.02 (-0.82% net). Fuel cell/energy storage play for AI data centers. Heavy insider selling ($13.9M over 90 days by directors/officers). Earnings in 51 days.

Positive Net Change (Finished Green Despite Dip):
Only 3 of 15 stocks finished green:

• FIX (+0.27%): Best setup—large dip, strong bounce, finished green
• APLD (+0.22%): AI infrastructure name with earnings in 7 days (high volatility risk)
• XMTR (+0.10%): Manufacturing platform with clean recovery

Low RSI / Oversold Conditions:

• OLMA (RSI 4.5): Extremely oversold biotech. Heavy insider selling ($5.6M by CMO and directors). High risk but potential for sharp bounce.
• AMPX (RSI 41.7): Battery tech for EVs, moderately oversold
• TEL (RSI 50.9): Electronics connector maker, neutral momentum
• FLNC (RSI 51.6): Energy storage for utilities, neutral

High RSI / Still Dipped:

• SEI (RSI 76.3): Energy infrastructure dipped despite overbought conditions. Insider selling ($106M by 10% owner KTR Management). Unusual—strong stocks rarely dip 4.7%.
• UUUU (RSI 75.2): Uranium/energy play also overbought but dipped 4.28%

Recent Headlines (Dip & Bounce Signals):

APLD (Applied Digital):

• Earnings Jan 7 (tomorrow after hours)—extreme event risk for this dip-bounce play
• Announced cloud business spin-off to merge with EKSO Bionics, creating "ChronoScale"
• $16B in long-term AI data center leases driving growth
• Analysts bullish: "AI Infrastructure Momentum Drive Revenue Growth in 2026?"
• Insider selling: CFO sold $3.4M, directors sold $2.6M+ combined

HOOD (Robinhood Markets):

• Expanding into prediction markets and AI investment tools
• Analyst coverage: "Is It Worth Investing Based on Wall Street's Bullish Views?"
• Class action settlement for 2016-2018 account holders (order flow litigation)
• "Where Will Robinhood Be in 3 Years?" (Motley Fool bullish)
• Competing views: "Prediction: Stock Is Going to Plunge in 2026" vs. "2026 Should Be As Lucrative As Last Year"
• Earnings Feb 11—volatility expected
• Insider selling: Bhatt sold $4.5M, multiple officers selling

POWL (Powell Industries):

• "Exceeds Market Returns: Some Facts to Consider" (Zacks)
• Electrical equipment riding data center/AI infrastructure boom
• Earnings in 30 days

FIX (Comfort Systems USA):

• HVAC/mechanical contractor for data centers
• Insider selling: CFO sold $4.2M
• Riding AI infrastructure build-out wave

BE (Bloom Energy):

• Fuel cell power for data centers and utilities
• Heavy insider selling: $13.9M by directors (BUSH, ZERVIGON, SODERBERG, Snabe)
• AI power demand tailwind

OLMA (Olema Pharmaceuticals):

• Biotech with RSI 4.5 (extremely oversold)
• Heavy insider selling: CMO sold $5.6M, director CLARK sold $1.3M
• Earnings in 70 days

RUN (Sunrun):

• Solar/residential energy
• Insider selling: Directors sold $2.4M+ combined (Fenster, Jurich)

TEL (TE Connectivity):

• Electronics connectors/sensors
• CEO sold $5.9M over recent weeks
• Earnings Jan 28 (22 days)

VERA (Not in top 15, but notable):

• Insider BUYING: Director ENRIGHT purchased $250K at $42.50 (bullish signal during dip)

Field Notes

Key Metrics Explained:

• Dip %: How far below yesterday's close the stock traded intraday. Calculated as (prev_close - low) / prev_close * 100. Larger dips = deeper intraday selloffs.
• Bounce %: Recovery from the intraday low to the close. Calculated as (close - low) / low * 100. Higher bounce = stronger buying stepped in.
• Net Chg %: Overall day performance versus yesterday's close. Often negative or flat despite bounce—this is normal for mean reversion setups.
• RSI(14): 14-day Relative Strength Index (0-100). Below 30 = oversold (potential bounce), above 70 = overbought (dip is unusual).
• Insider Net (USD): Net insider purchases minus sales over 90 days (P-S only, excludes awards/exercises). Positive = buying (very bullish during dips), negative = selling.
• Days → Earnings: Time until next earnings report. <7 days = high volatility, 7-30 days = moderate risk, >30 days = lower event risk.

Sector Rotation Observations:

• Industrials dominate with 5 signals (FIX, POWL, XMTR, BE, AMPX)—infrastructure, electrical equipment, HVAC, and battery tech all dipping
• Technology with 4 signals (RUN, TEL, APLD, RMBS)—solar, connectors, AI data centers, and memory IP
• Energy with 2 signals (SEI, UUUU)—infrastructure and uranium both pullback despite strength
• Healthcare (OLMA)—biotech extremely oversold (RSI 4.5)
• Real Estate (COMP)—prop tech showing weakness
• Financial Services (HOOD)—fintech dipping on mixed sentiment
• Utilities (FLNC)—energy storage weak bounce (2.44%)

Dip & Bounce Quality:

• Strong setups (Bounce > 5%): FIX (8.65%), POWL (6.85%), XMTR (6.90%), COMP (5.66%), AMPX (5.27%)
• Moderate setups (Bounce 4-5%): BE (4.72%), OLMA (4.99%), RUN (4.87%), SEI (4.86%), TEL (4.54%), APLD (4.80%)
• Weak bounces (Bounce < 4%): UUUU (3.73%), FLNC (2.44%), HOOD (3.09%), RMBS (3.84%)

Weaker bounces suggest less conviction from buyers—these are higher risk for mean reversion failure.

Insider Activity Warning:
Heavy insider selling across most names:

• BE: -$13.9M (directors dumping)
• SEI: -$106M (10% owner exiting)
• OLMA: -$5.6M (CMO selling)
• TEL: -$5.9M (CEO selling)
• FIX: -$4.2M (CFO selling)
• APLD: -$5.4M (executives selling)
• HOOD: -$4.5M (co-founder selling)
• RUN: -$4.1M (directors selling)

Exception: VERA (not in top 15) had insider BUYING ($250K purchase by director ENRIGHT)—very bullish for mean reversion.

Earnings Risk:

• APLD: 7 days (Jan 13)—CRITICAL: Earnings tomorrow. Don't hold through report unless willing to accept binary outcome.
• TEL: 22 days (Jan 28)—Approaching pre-earnings volatility window
• RMBS: 27 days (Feb 2)—Moderate risk
• POWL: 30 days (Feb 5)—Approaching threshold

Vlad's Take (EverHint)

Market Backdrop (Jan 6, 2026):
Markets extended gains Tuesday with S&P 500 up 0.53% to 6,944.83 (new all-time high), Nasdaq up 0.43% to 23,547.17, and Dow up 0.97% to 49,462.09. The VIX closed at 14.75 (down 1.67%), signaling low-to-normal volatility—ideal for mean reversion plays. Small-caps outperformed with Russell 2000 up 1.49% to 2,582.90, indicating broad market strength. Treasury yields rose slightly (10Y at 4.179%, up 0.14%), and crypto was mixed (Bitcoin -0.39%, Ethereum +1.84%). Overall: risk-on environment with strong breadth—perfect conditions for dip-bounce setups to work.

Strategy Commentary:
With 26 dip-bounce signals and the market at all-time highs, today's dips are not driven by broad market weakness—they're stock-specific or sector-specific flushes. This is exactly when mean reversion works best: strong market + individual stock selloffs = asymmetric bounce opportunities.

Three Observations:

1. Industrials getting hit (FIX, POWL, BE, XMTR)—likely profit-taking after strong AI infrastructure runs. These are high-quality names with real revenue tailwinds, making the dips buyable.
2. Insider selling is rampant across almost every name. Insiders are taking profits at elevated prices. This doesn't invalidate the 1-3 day bounce thesis, but it does mean don't overstay your welcome.
3. APLD's 7-day earnings window is a landmine. The stock dipped 4.37% and bounced 4.80%, but earnings are tomorrow. This is a binary event—trade it only if you're comfortable with overnight risk.

Trading Tips for Dip & Bounce:

Entry Timing:

• Don't chase today's close. Wait for tomorrow's open or early weakness. Many dip-bounce setups revisit yesterday's close level before bouncing higher.
• Use limit orders at or below today's close price. Let the stock come to you.
• Consider scaling in: 50% position today/tomorrow, add 50% if stock dips further.

Position Sizing:

• Start small: 1-2% of portfolio per signal. These are short-term trades, not core holdings.
• Max 3-5 signals total. Don't spray across all 26—pick 2-3 best setups (highest dip %, strong bounce %, low insider selling).

Stop Loss:

• Tight stops: Below today's low (the intraday flush level). If the stock breaks today's low, the bounce thesis is invalidated.
• Example: FIX closed at $1,035.11, low was $952.74. Stop at $950 (just below low). Risk = 8.2%. Target = yesterday's close ($1,032.31) or yesterday's high—reward = 5-10%.

Take Profit:

• Conservative: 3-5% bounce from entry (1:1 or better risk/reward)
• Aggressive: Previous day's high or previous week's high
• Best practice: Take 50% off at +3-5%, trail stops on remaining 50%

Time Stop:

• Exit if no bounce in 1-3 days. Mean reversion either works quickly or fails. Don't let these become bagholders.
• Earnings risk: Exit before earnings if within 7 days (APLD is already there).

My Picks (Top 3):

1. FIX (7.71% dip, 8.65% bounce): Best setup—largest dip, strongest bounce, finished green. HVAC contractor for AI data centers = secular tailwind. Stop below $950, target $1,045-$1,050.
2. POWL (6.77% dip, 6.85% bounce): Electrical equipment for data centers. Clean setup, 30 days to earnings (manageable). Stop below $336, target $365-$370.
3. XMTR (6.36% dip, 6.90% bounce): Manufacturing platform, finished green. Low insider selling relative to others. Stop below $63, target $70.

Avoid:

• APLD (earnings tomorrow)—binary risk too high for mean reversion
• OLMA (RSI 4.5, heavy insider selling)—extremely oversold but insiders dumping $5.6M suggests more downside
• FLNC (weak bounce 2.44%)—buyers not showing conviction
• HOOD (mixed sentiment, heavy selling)—fintech facing headwinds despite analyst optimism

Risk Warning:
Mean reversion can fail in strong downtrends. Today's signals occurred during a market rally (S&P at highs), which is bullish. But if the broader market reverses, these dips could accelerate. Monitor market context daily and exit if S&P breaks below recent support.

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