We are not adding any new trades to the Premier Investors newsletter tonight.
Stocks look like they're at a pivotal intersection. The small cap Russell 2000 index is testing significant support in the 1,080 area. Meanwhile the S&P 500 is testing what should be major support at the bottom of its two-year bullish channel. A breakdown would look very bearish indeed. At the same time the small caps are short-term oversold and due for a bounce.
Tomorrow we have the European Central Bank decision on interest rates. ECB President Mario Draghi will hold a press conference afterwards and many are expecting him to announce more stimulus or some sort of QE-like program since whatever they're doing isn't working on Europe, which continues to sink. His press conference could be the catalyst to send stocks one way or the other.
Bearish candidates were a dime a dozen tonight but most of them looked over-extended. So instead of chasing stocks lower I tried to find some bullish candidates. I've listed some symbols that looked interesting below.
My favorite is probably RGEN . The most recent data listed short interest at 14% of the small float and RGEN's bullish breakout today might spark a short squeeze.
RGEN, BAH, TSN, NRG, CMRX, KO,