From the desk of Steve Strazza @Sstrazza

If you're reading this it's probably because you've read our Table of the Week where we identified roughly 100 of the strongest stocks in the S&P 500. After digging into the charts of all these stocks, we came up with a handful of setups that we believe are currently offering the best reward/risk. Here they are, in no particular order.

From the desk of Steve Strazza @Sstrazza

We want to be buying stocks that are in the strongest uptrends. One way we identify them is by looking at momentum which we use the 14-day RSI for. The strongest uptrends do not get oversold, or fall to RSI levels below 30. In fact, the strongest uptrends often stay above the 40-50 level and constantly print overbought readings above 70.

The S&P 500 registered an extreme oversold reading below 20 during the violent correction that began in late February. Here's a look.

The boys were out with a bullish piece on China stocks, citing oversold conditions. As JC said: "If the world isn’t ending after all, this could be an interesting place to look for huge winners."

So I've got my eye on a big name that has held up pretty well, all things considered.

Sunday we wrote a post reiterating our long-term view that the path of least resistance in the Rupee remains lower.

With that said, we were a bit cautious about buying the potential breakouts in USD/INR and JPY/INR until we got confirmation, but we've seen some solid follow-through over the last two days.

This post will outline how to approach getting involved in the trade if you're not already.

Today we wrote a post updating our market view, which is that we expect further chop but are looking to put cash to work slowly on the long side. In that post we outlined what we'd need to see to get aggressively long, so please check it out.

This post is going to outline several stocks that are presenting attractive reward/risk scenarios at current levels, so if you need long exposure this is where we want to be.

In this post, we're going to recap our views from the last two months, discuss our current market view, and outline what conditions need to present themselves for us to be aggressively buying stocks.

First, let's recap our posts from the last few months that outlined why we were taking a more defensive approach towards stocks.

Are you noticing the relative strength in Emerging Markets? That is NOT something we would expect to see if the world was actually coming to an end.

I can't stress this enough, stay away from the glorified gossip columns. They know less than nothing. You know who knows? The market. So that's where we'll get our data.

Think about it like this, there are more people and firms with more money and better intelligence than any of these governments, communist or otherwise. Are you actually going to trust the propaganda being put out in the "news"?

Or do you trust the people putting actual money behind the information they're spending a fortune to get? When we want to know what's really going on, we turn to the markets. The rest is pure junk.

For now, we're in an environment where we want to be buying stocks. We want to be incredibly disciplined with our risk levels, probably more than usual, but buying stocks nonetheless.

We've been running scans for stocks putting in bullish momentum divergences, or better, not getting ...

From the desk of Steve Strazza @Sstrazza

New Mystery Chart!

For those new to the exercise, we take a chart of interest and remove the x/y-axes and any other labels that would help identify it. The chart can be any security in any asset class on any timeframe on an absolute or relative basis. Maybe it’s a custom index or inverted, who knows!

We do all this to put aside the biases we have associated with this specific security/the market and come to a conclusion based solely on price.

You can guess what it is if you must, but the real value comes from sharing what you would do right now. Buy, Sell, or Do Nothing?

We're buying a few Chinese Internet Stocks. If the world isn't ending after all, this could be an interesting place to look for huge winners. I'm already seeing relative strength there.

Our first downside objectives in the major indices have been met, so we're back on the lookout for long ideas.

One stock that has caught our attention is IndoStar Capital Finance Ltd.

We've been pointing to weakness in Indian equities, and equities around the globe, since mid-January. Last week the global leader, United States equities, joined the correction party and quickly met our downside targets.

We've since flipped long US stocks and are now playing for a bounce.

Patience has paid in Indian stocks, so here's a quick update on our view now that our first downside objectives have been hit in the major indices.

As March gets under way, it’s time to review positions with March options that remain open (haven’t already hit profit targets or been stopped out).

Wild couple of weeks, but that doesn't mean we deviate from our plans!

Most trades I put on for All Star Options tend to have a minimum duration of 30 days (short premium plays) and often as long as 6-8 months (for long premium plays). As options approach expiration, greeks like theta and gamma start to become my enemy and whipsaw my P/L. Therefore, as options and spreads get into the expiration month, my best practice is to put each position on notice — it’s time to take action.