The bulls finally came to the party, helping the markets fight back from what could have been potentially a disastrous day. The bullish hammer formed today looks similar to one formed at February lows. We shall have to wait and see whether history repeats itself over here. I foresee a short term bounce, as the markets are still in extreme oversold conditions and today was an impressive day for the bulls, followed by a reversal again. The next resistance level is 1100. For the bulls to take complete control again, they need some good news to come out of the Euro zone.
Here are some stocks that I like for playing a potential bounce.
DLTR - Pointed this out yesterday too. Adding to my existing position just over 63. I like how it held up during the earlier part of the day today.
RDN - Positive divergences all over the place. Target - 9.10
NGD - You gotta love the bounce off MA(50) today. Gold continues to look impressive and this is going to move with it.
PAL - My gut instinct play. Got some at 3.13 today.
UCO - Double bull Oil ETF. Oversold and positive divergences also beginning to appear. In this too.
Take care and good luck!