Thursday was another rough day for stocks. The S&P 500 spiked down at the open and was down -1.0% before bouncing. The large cap index did recover most of its losses but it's now down three out of the last four days.
Meanwhile the small cap Russell 2000 index continues to underperform. The $RUT gapped down this morning and essentially bounced off potential support near the 1,150 level and its simple 150-dma. Currently the $RUT is right in the middle of its 1,080-1,210 range over the last few months.
The big bounce off this morning's lows is somewhat encouraging but there is no guarantee the pullback is over.
I am not adding any new trades tonight but I will mention a few stocks that caught my eye.
ADM looks interesting. The company has earnings on August 5th. ADM displayed relative strength today with a +2.6% gain The stock's all-time high is $48.95 (from 2008). The trend is up but the $49-50 zone could be significant resistance.
DV also looks interesting. DV is scheduled to report earnings on August 7th. Shares have a long-term up trend and are just now starting to rally off technical support near its 100-dma and pattern of higher lows. Today's high was $44.89. I would be tempted to buy a breakout past $45.00. The $50.00 level is probably resistance and I would not hold over the earnings announcement.
GB also caught my eye. They are in the medical appliances and equipment industry. GB is due to report earnings on July 31st. I think GB has potential on a rally past its July 1st high of $50.65 but I would not hold over the earnings report.
These are not official newsletter trades but merely ideas that might be worth your attention.
We will definitely put in some extra effort to find new trades for the weekend newsletter!