The bears have to be concerned here, because as the story has been the last seven years, going back to the March 2009 bottom, is that the bulls love to buy the dips. They may not always do it when you expect them to, but when they do, it is ferocious and it clobbers any gains that the determined bear might have been trying to hold on to. 

So now we have a strong rally off of a notable sell-off early on yesterday, and managed to finish in the green on the day. Now the market is following through, and it is showing the markings of one of those oversold bounces. I used to call these dead-cat bounces, but the dead cat bounce suggests a moderate bounce in relation to the overall sell-off that was experienced. Nowadays, those dead cat bounces tend to leap over the building that the cat was dropped from. So with the Santa Rally typically coming during this time of year, and the bounce that we have seen today and yesterday, there is a good chance that this bounce is much more than an oversold bounce, but a rally into the end of year. 

Of course there is that pesky Fed announcement that is expecting to announce the interest rate hike tomorrow. After the selling that we have seen of late, you’d think that it would be priced in at this point, but the language of the statement is always a wildcard as is the market’s reaction to it. 

But for now, if you are wanting to short this rally, which I’ll take a pass on for now, then below are a number of ones to consider. 

Here’s the bearish watch-list: