Stocks have been slowly grinding higher over the last few weeks and are on the edge of confirming a bear market rally.
If you are a nimble, short-term trader, you may be considering jumping into a few beaten-up stocks in the hope that the rally has legs.
I have picked out three stocks for you that you can look into. One of them is a small coking coal company that I came across at the Noosa Mining Conference that was held last week.
It was set up by the founder of Stanmore coal and has hopes of ramping up production substantially over the next few years from a standing start. They took a hit when the crazy Queensland jump in royalties was announced recently but have bounced nicely and remain in a strong uptrend.
Another stock is close to commissioning a new gold mine in Africa, and the final one is a market leader in sales enablement software.
I have no interest in making a claim that stocks will start rallying strongly from here, but odds are increasing that we could see a tradeable bounce before the selling returns.
The long-term downtrend remains in place, and I think this rally will have a use-by date in the next month or three, but until then, there could be some money to be made buying a few good quality stocks that are trading at a large discount.
Regards,
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Murray Dawes,
Editor, Money Weekend
