We gapped up too much to start that day, and that invited selling rather than chasing so far. If we continue to hold the gains, some buyers will likely step up, but right now we have mostly fades, with Apple (AAPL) being a particularly good example. There are a few runners like Google (GOOG), but buyers are understandably a bit slow in embracing a bounce after two days of poor action.
Breadth is quite good at nearly 4 to 1 positive, and all major sectors are up, with biotech, gold, steel, coal and oil leading. We are slowly walking back up the opening highs, and that should trigger some stops if it is taken out.
I've moved mostly to cash recently and don't have much inventory, so I'm digging down, looking for some opportunities. I'm not looking for any long-term holds at this point and will keep very tight stops on anything I buy.
One position I added this morning is Cooper Industries (CBM). This is a pharmaceutical supplier, and it has excellent EPS numbers. The company is expected to earn $0.83 a share this year, which is an increase of 83% over the prior year. Last quarter it posted a big upside surprise, but it has very bumpy earnings. It has a 97 EPS rank and a 98 relative-strength rank from IBD
Another one I'm watching closely here is Sarepta Therapeutics (SRPT). That has been a big winner, but it has been pulling back after posting very impressive data. The shorts have been attacking it, but it is scheduled to present additional data this weekend, and I'm looking for a bounce as it approaches support around $30. This should move fast when it turns, but right now the bears have the upper hand.