When ever stock prices fall, the first think to do is run your alpha scanner (relatin>ve strength) to find stocks that have not being sold off at the same rate as the general market. You want to find stocks that have only be sold off 5% when the general market has sold of 15%. The stocks found can be classified as within a very determined market up phase. Or more bluntly these are the stocks the portfolio managers do not want to sell as they foresee more upside.
We did a Alpha scan for stocks at the bottom of the recent August SP500 sell off. Some of these stocks have already bounced back 10%.
Of course you do the opposite when the market is up, you scan for stocks with negative alpha for future shorts.