S&P 500 Futures are up 20 points overnight as European leaders agree to bring down Italy's and Spain's borrowing costs and create a single banking supervisory body for the euro zone. This rally may fizzle in the short term but as we've said all along, there will be a solution.
Merkel returns to Berlin on Friday where she faces a key vote in parliament to approve the euro zone's new permanent bailout mechanism. Voting begins at 5 pm CET. The road ahead is rocky and uncertain at best. However, where we live, uncertain times are by far the best time to find value stocks that have been knocked down but not knocked out.
Magnum Hunter Resources (MHR)
Consider buying $4.25 Stop / Stop Loss $3.75 / Initial Target $5.75
Key Energy Services (KEG)
Consider buying $10.50 Stop / Stop Loss $8.75 / Initial Target $16.00
Dycom Industries Inc. (NYSE:DY)
Consider buying $20.75 Stop / Stop Loss $17.40 / Initial Target $22.50
LSI Corp. (NYSE:LSI)
Monster Worldwide Inc. (NYSE:MWW)
Consider buying $8.75 Stop / Stop Loss $7.90 / Initial Target $10.00
Investing is risky and you can lose all your money. Believe it.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.