The dip buyers jumped on the gap down to start the day, but weakness in financials and retailers are keeping folks on the sidelines. Gold has reemerged as a leader today and that is not a good sign for equities, especially with banks struggling.
Consumer confidence numbers just hit and are absolutely horrendous. Expectations are not even close and we are selling off hard on those numbers. That is a downright scary number and does not bode well for the economic reports due out later this week.
I'm trying to knock out some quick trades and have made some sales on that consumer confidence number. The coffee stocks are at the top of my radar with some good follow through in Coffee Holding (JVA), which I discussed on Friday. I took some Caribou Coffee (CBOU) as a sympathy play as well.
One thinner name on my radar is Core Molding Technologies (CMT), which is attempting to breakout on a very big surge in volume this morning. In its most recent quarter the company saw revenues grow 50% while EPS grew 550% to 39 cents from 6 cents last year. The stock trades with a PE of 9 and they just opened a new plant which suggests that they expect continued growth. I'm building a position on this pullback after the surge at the start of the day.