As the market has bounced off its bear market lows set mid-month, some shares have gained as much as 20% — with traders snapping up the riskiest names leveraged to the hope that the U.S. could skirt a recession. For a trade, some of these stocks could have more to run if the market continues to bounce. CNBC Pro screened the S & P 500 using the following criteria: At least a 10% pop off the low set in June Greater than 1.5 beta — typically moves much more than the market Short interest as a percentage of the available shares above 5% So these stocks are bouncing hard already, have a history of moving much more than the market in upturns and have big bets against them that will need to be covered if they keep rallying. The screen used FactSet data. Nine names in the benchmark came back: Three cruise lines and three casinos make the list, along with Dish Network, Etsy and CarMax. To be sure, these names could lead the way lower if the stock market bounce fails, or if there are growing signs the U.S. is headed for a deep recession. Not only do their share prices have a history of moving more violently than the market (to the downside as well), but their fundamentals would all take a big hit in a recessionary economy. But for a short-term horizon, these could be the stocks that lead the initial stages of a market comeback. Trough Monday’s close, the S & P 500 was about 7% above its bear-market low, but still 19% off its high.
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