Editor's Note: Scott will be away for a much-needed vacation from Tuesday August 22 to Friday September 1. To help you stay up to date with the market, we will send you content from other T3 contributors.

This market remains tough. I've been saying the summer top was in, and as such I've been taking a very tactical approach to finding names.

As you can see in my position disclosures below, I'm treading very lightly.

The market is oversold with the Oscillator -68, but that doesn't mean we can just hit the gas pedal and buy.

China's Evergrade filed for bankruptcy, and that's driving fears of a credit event. Plus, inflation is sticky in Europe and rates are rising in the US.

And many strong earnings reports -- like Wal-Mart's (WMT) -- are being sold.

There is definitely risk of going from very oversold to extremely oversold.

And I would not be surprised if the SPX hits 4,200 in the fall, which is about 5% more downside from here.

I'd still key in on the tech leaders like Apple (AAPL), Tesla (TSLA), and Nvidia (NVDA). The market will have a hard time rallying without these names.

Now let's go over our current Power Plays:

Disney (DIS): Disney is very oversold and it's been quite choppy. Still, I think it can benefit from a rotation out of high-beta tech names like SuperMicro (SMCO) and Shopify (SHOP). Still, it's hanging on by a thread and it needs to hold the $81 to $85 area near-term to have potential to outperform.

Occidental Petroleum (OXY): Energy has been the only positive sector in August, and Occidental is my favorite name in the group because the chart is constructive and it has buying support from Warren Buffett. It needs to hold the $59 to $62 area to stay out of trouble.

-Scott