Continued weakness in Facebook (FB) and JPMorgan Chase (JPM) has kept the mood poor but the market is making an effort to shake that off, and the mighty Apple (AAPL) is finally starting to show signs of life -- its first decent action in weeks.
Everyone knows the market is oversold and in position to bounce, but that was the case all of last week as well, so the dip-buyers are understandably hesitant. They want to see someone else step up first before putting new money at risk. The issue isn't whether there are good values, but whether or not there are willing buyers.
I'm sitting mainly in cash and interested in picking off a few trades here and there. I have no interest in building any major long-term positions right now. We are in a downtrend and one small oversold bounce does nothing to change things.
One stock on my radar is Web.com (WWWW). It is my stock of the week and has a Buy recommendation from Deutsche Bank with a $20 target. Technically, the stock has shown good relative strength but needs to recover its recent secondary pricing of $15.25. The Internet sector isn't a group that looks very attractive right now, but WWWW's valuation and technicals look promising.