August has produced an amazing roller coaster ride for stocks. This week's action with the up +5% one day and down -5% the next is nearly impossible to trade. I am impressed that gold held up as well as it did in spite of the news of higher margin requirements. I'm still kicking myself for not buying the DGP (double-long gold ETF) on the breakout over $50.00. I would not chase it now.
Looking ahead to Friday it is anyone's guess if stocks will see any follow through on Thursday's big bounce or will stocks roll over again.
We are not adding any new trades tonight. It will be interested to see if traders buy stocks into the close on Friday or do they sell them because they don't want to be long over the weekend.
Here is a list of stocks I'm watching as potential bullish trading ideas if the rebound continues:
F, TJX, SBUX, GA, DLTR, APOL, and NEM