Filed Under: Tickers in this Article: HMIN, SOHU, POT, BXP
Often, when the market bounces after a weak period, traders will
rush to short the most popular stocks that have had a strong
rebound. The usually flawed reasoning is that the stock is too
"high," or too "expensive." While there is some merit to a mean
reversion trade, often the leaders tend to rebound quicker and
hold more of their gains when the markets finally do turn. The
safer play is to focus on stocks still showing weakness and
below important support levels. Investopedia Markets: Explore
the best one-stop source for financial news, quotes and
insights.  Much like when a strong stock finds support during a
healthy pullback, weak stocks will likely have trouble once they
return to a prior support level from underneath. For example,
Home Inns & Hotels Management Inc (Nasdaq: HMIN) had been
holding near $33 on several occasions earlier this year as it
drifted lower. It ended up breaking under this level in late
September. The breakdown was likely