Sep 10, 2010 8:47 AM PDT
If you currently own Deere & Company (NYSE:DE) and are concerned about the recent pullback from new 52-week highs (an alarmingly methodical move lower), I understand. Perhaps this will help - there's a last bastion of hope ahead.
That 'hope' is the support line that extends all the way back to March of 2009. Normally - in a marketwide bearish mode - I wouldn't give much credence to a year-old support line. But, this one's been tagged by DE five distinct times now. So, I don't want to blow it off until I see it broken. That support's at $54.93 and rising, versus the current price for Deere & Company shares of $57.06. 
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I know Global Sources Ltd. (Bermuda) (NASDAQ:GSOL) is up today - by about 6%. Before you buy into the 'breakout' of this small cap stock though, you may want to take a look at my chart below. The truth is, it's no coincidence that GSOL is struggling as it approaches $7.90.
The fact that we saw this chart stop rallying when it hit a high of $7.89 late last month should have been our first red flag, as it's also right where we saw GSOL hot a brick wall four times in the first half of 2009. Today's high? It was $7.78, followed by a major pullback. Folks, the line in the sand has been drawn for Global Sources Ltd.
I don't know what's going on with Platforms Wireless Intl (PINK:PLFM); the company hasn't released any news that I can find. In fact, I could find absolutely nothing about the company at all.... even the website's been suspended (due to lack of bill payment) - not a good sign. Yet, PLFM shares have found a ton of buyers over the last few months, and we're seeing record-volume buying today.
I suspect - and this is likely to be trade-worthy - that something bullish is going on with Platforms Wireless that leaked, and will be exposed sooner than later... this many people couldn't be suddenly interested without reason. I hate to speculate without even really knowing why, but this small cap stock's move today has me wanting to follow the money.
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