This Sector Might Be Set For A Massive Oversold Bounce

There’s an old Wall Street adage: Never catch a falling knife.

They say this because falling prices typically signal a major change in trend. Often, it makes sense to sit tight and wait for the dust to settle.

But when it comes to the stock market, playing it safe can keep you out of rare, potentially lucrative trades.

Because sometimes, price action gets so rapidly destructive and turbulent that the odds favor a massive short-term reversal.

This post originally appeared at Trades Of The Day.