Chart Review of SNWT, HTDS, and LULU

Stocks are mostly up today, which ironically has not meant good news for a few names from the small and micro cap end of the spectrum. Though we think Hard to Treat Diseases (PINK:HTDS), Lululemon Athletica Inc. (NASDAQ:LULU), and San West Inc (OTC:SNWT) are worthy trading opportunities, only one of the three is actually a bullish possibility. Here's a closer look at all three.

I had to zoom in on the chart of Lululemon Athletica Inc. (NASDAQ:LULU) in order to show you a key detail, so you can't quite see the scope of it. But, after moving from July's low around $12.00 to the $27.00 area, this stock's overbought and loaded with profit-taking potential.

And, the time for such a result may be upon us. For starters, take a look at the loss of momentum, Lululemon Athletica has mostly traded sideways since early November. More recently (as in today), LULU gave us an outside reversal bar. Though it's not fully intact as of right now, it could be by the end of the day. The volume spike also hints at a pivot for Lululemon.

As for a target, Lululemon Athletica has key Fibonacci retracement lines at $22.08 and $17.91. Both of them are good starting points.


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I almost skipped making any comments on San West Inc (OTC:SNWT), as it was the centerpiece f a heavy promotional effort. Then I realized - pumping or not - it was actually going higher.

In all fairness, the San West chart is a chart I'd probably trade anyway. The momentum is bullish, the stock's not overbought (thanks to a nasty pullback in October and November), and the volume is growing again as SNWT starts to rally again. Those are all things traders look for.

The difference between San West Inc. and other rallying stocks, however, is the reason. It's an artificial strength. That's not a bad thing - it just merits the warning that when the promotional effort for SNWT stops, so too should the rally. You just don't want to be the last one off the ride. I have no idea how long San West can rally though, so keep super-close tabs if you're venturing in.


And finally, let's update our Hard to Treat Diseases (PINK:HTDS) call, as it's halfway to our bearish target.

Our last look at a Hard to Treat Diseases chart was on November 30th. At the time, I was conditionally bearish on the stock. If HTDS were to all under support at $0.007, then I expected to see a wave of selling drive shares much, much lower. Well, Tuesday's move under $0.007 did indeed kick-start that pullback.

At this point, the only support level I see for Hard to Treat Diseases shares is July's floor around $0.0008. Crazy? I rule nothing out. If you can actually short-trade it (most brokers will restrict shorting at this price level), I think HTDS could be a rewarding trade. If you're long, just know it's apt to get worse before better.


If you'd like to know of any changes in our opinion of HTDS, LULU, and SNWT, be sure to Sign-Up for our FREE weekly Small Cap Network Newsletter TODAY! Identify quick changes in current market activity and receive timely trading ideas aimed at maximum ROI. Click Here to learn more...