Chipotle among new additions to Oppenheimer's Trifecta pick list
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The breadth of stocks has likely bottomed, particularly those with rate sensitivity, but this textbook bottom is missing the rates component, Oppenheimer technical analyst Ari Wald says.
"Overall, the textbook criteria for a market bottom has developed, and is why we still believe an opportunity has been presented for the long-term investor," Wald wrote in a note. "However, stubbornly high bond yields remain a lingering concern, and is why still think near-term traders should wait for lagging confirmation, including a drop in the 10-year US Treasury yield (US10Y) (TBT) (TLT) below 3.55% (Oct. 4th low)."
One "case for an S&P (SP500) (NYSEARCA:SPY) upturn is simply based on a contrary view against what we see as one-sided groupthink," he said.
Wald updated the OPCO Trifecta list of stocks rated Outperform, screen positively in trend work and are supported by top-down portfolio tailwinds.
"Our attempt is to maintain a dynamic list of our top ideas, deleting when necessary and adding/highlighting when tactical."
The additions to the list are:

Chipotle (CMG)
Academy Sports & Outdoor (ASO)
O'Reilly Automotive (ORLY)
SPX Technologies (SPXC)
Regal Rexnord (RRX)
W.W. Grainger (GWW)
Regeneron (REGN)
Vertex (VRTX)
Ensign Group (ENSG)

CMG, ASO and ORLY are considered higher conviction picks, having upheld their 200-day moving average and not corrected as much in Q3.
The stocks removed from the list on Oct. 14 for trend reasons were:

ChargePoint (CHPT)
Tesla (TSLA)
SolarEdge (SEDG)
Etsy (ETSY)
Alteryx (AYX)
Marvell (MRVL)
Monolithic Power (MPWR)
Global Payments (GPN)
Centene (CNC)

See Goldman Sachs' picks for stocks that will still be bargains in a recession.