Using Friday's Pullback to Find Actionable Ideas
Published: October 13, 2025
This content is for informational purposes only. This should not be construed as solicitation. The general public should consult their financial advisor for additional information related to investment decisions.
Friday's pullback brought many actionable names back into a more reasonable trading range. We discuss a screen you can run to find those ideas and highlight a few options.

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Friday’s action saw the S&P 500 decline over 2.5%, its largest single day decline since tariff induced volatility of early April. It goes without saying that large drops are “scary” as clients call in and see red across their portfolio, but it is important to remember that markets do take normal exhales from time to time… even during overwhelmingly strong market environments. With that said, the decline gives us the ability to comb through the market and find technically strong stocks “on-sale” that you can add to your portfolio. If you read or listen to NDW research quite often, the team frequently preaches the need for “normalization” for strong stocks. In fact, our recent Pulse in 10/10’s Daily Equity Report discussed our primary indicator to judge a stock’s near-term positioning, that being the Weekly Overbought/Oversold reading. We won’t focus on that more today, but the point is that multi-percent decline days typically ring in normalization.

Using the security screener, we can focus in on S&P 500 stocks that have moved back into O’s on their default PnF chart over the last 2 days. This will isolate stocks that have “pulled back” meaningfully. From there, we can add a handful of additional filters, detailed below. By focusing on 4 and 5 attribute stocks that aren’t “overbought” by NDW standards anymore and maintain a pair of buy signals, we produce a list of 22 stocks you could look towards after Friday’s exhale. Today’s piece will focus on three of them.

Monolithic Power Systems Inc. (MPWR)

All of the stocks we will focus on today will have strong technical pictures. MPWR fits the bill, earning all five technical attributes as of 10/13/25. After breaking to new all-time highs to open October, the stock pulled back into more actionable territory following Friday’s action and offers an attractive entry point at/around current levels. In terms of support nearby, MPWR is within earshot of support at $880… which is also around the middle of the 10-week trading band and old resistance from earlier this summer.

GE Aerospace (GE)

GE has nearly doubled so far in 2025, sitting on a string of 5 consecutive buy signals on its default chart. The perfect 5/5’er has run into some resistance at all-time chart highs around $304, pulling back towards support at $292. Even if further downside was in store, the sell signal would technically flag as a bullish shakeout formation, adding to the weight of the evidence for the name. Below $292, bulls could step in around $280- old resistance and the middle of the trading band.

Cincinnati Financial Corporation (CINF)

Broader financials remain a standout within NDWs broader rankings as we sit roughly halfway through October. Insurance names were a standout in 2024, but the group has petered out in 2025. Broader representative IAK remains technically acceptable by NDW standards… but does lag behind more traditional finance names. CINF is a standout within the insurance space, earning a 4/5 TA score as it pulls back off all-time highs. A range of old resistance in the mid-$150’s could act as new support in the near-term.  

 

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DISCLOSURE

This report is for Internal Use Only and not for distribution to the public. While we make every effort to be free of errors in this report, it contains data obtained from other sources. We believe these sources to be reliable, but we cannot guarantee their accuracy. Investors who use options should read the Options Disclosure Document before making any particular investment decision. Officers or employees of this firm may now or in the future have a position in the stocks mentioned in this report. Dorsey, Wright is a Registered Investment Advisor with the U.S. Securities & Exchange Commission. Copies of Form ADV Part II are available upon request.
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