For the second straight day, opening strength faded quickly. This time it wasn't nearly as exuberant to begin with and we quickly found support. This may turn out to be a healthier setup for upside for the remainder of the day as we have probably shaken out the few weak hands.
We are at the highs of the day and if it can hold for an hour or so that should attract bounce buyers. The key is for buyers to gain a little confidence, and the only way they are going to do that is if we can stay in positive territory.
I'm a buyer with a short-term time frame and I'm looking for entries. I took some of the mining stocks on early weakness. Richmont Mines (RIC), my stock of the week, continues to be my favorite but I also like Endeavour Silver (EXK) and Minefinders (MFN).
A new name I've been looking at is WisdomTree Investments WETF. It develops niche exchange-traded funds that focus on dividends, earnings and such. It's also active with its Asia Local Debt ETF (ALD) and launched very successful bond funds in that area. Given the surging volume in ETFs recently, I believe this stock will attract increased interest.
The stock received a plug in Barron's this weekend and, technically, a move through $8 should attract momentum buyers. Recent volume indicates the stock is starting to hit the radar screens of the hot money.
