I haven't taken a long position in anything since Thursday, as I stood on the sidelines on Friday. But the market is showing healthy signs of rebounding today and moving back into the green before today's close.
One industry that just seems to be taking a beating of late are the discount clothing retailers, so I'd like to dip my toes in the water here and take a long position in Big Lots (BIG) and see if it can attact some buyers in this oversold industry.
I took at long position at $30.84, and will be putting my stop loss in at $29.93. It's an interesting setup because when this stock gaps down, it tends to make for a nice bounce play over the course of the next several months.
While I don't plan on holding for several months (unless it becomes that good of a trade), I can definitely see where we could get a 7-10% bounce out of this name in the next 5-10 trading days.