Stocks have made their way back into the red again today, this time much sooner in the session than we saw yesterday. The sharp reversal accents the need for traders to at least make sure their bullish picks are very strong, or better still, to trade with the flow by taking on short/bearish positions. On that note, Cell Therapeutics, Inc. (NASDAQ:CTIC), U.S. Gold Corporation (AMEX:UXG), and Generex Biotechnology Corporation (NASDAQ:GNBT) deserve a very close look.
We've looked at
Cell Therapeutics, Inc. (NASDAQ:CTIC) several times over the last few months, with the most recent examination coming on
September 16th. The story hasn't changed once though... we've been bearish on it for a while, and haven't been disappointed.
As of our last look at CTIC, shares were priced at $1.43, but more alarmingly, had fallen under a major support line that extended back to May. Now, though Cell Therapeutics has fallen to $1.01 in the meantime, the misery may not be over.
Basically, Cell Therapeutics shares have found a bearish groove; a falling resistance line has been defined. You could argue that CTIC might find support at September's low of $0.86 (which is also a major Fibonacci line), though that would be a weak argument. I think this stock could revisit $0.30 or so before it's all said and done.
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This is more of an update on our open trade for
U.S. Gold Corporation (AMEX:UXG) than a new idea, though the comments apply either way.
We bought UXG back on
July 11th, partially as a hedge, and partially just because it was showing us a lot of upside strength. And, given that U.S. Gold Corporation shares are currently at $2.70 versus our entry price of $2.49, we can't complain much.... we're profitable.
On the other hand, U.S. Gold Corporation is at a major chart inflection point. For the fifth time since August, support at $2.65 is being tested. My worry is that one of these attempts to break support is eventually going to be successful. So, that's my line in the sand - I'm hoping UXG bounces off the lower side of this range and returns to $3.50 so we can make an exit, but I'm ready to dump it if we start to see trades around $2.60.
The last time we looked at
Generex Biotechnology Corporation (NASDAQ:GNBT) on
September 30th, things were a little more encouraging. In fact, now they're downright discouraging... perhaps qualifying as a breakdown.
In a nutshell, GNBT did not fund support at the rising support line we plotted with our last inspection. Instead, Generex Biotechnology fell under it in early October, and just today has fallen under a prior low. We're going to take it all at face value and consider it a breakdown.
As for where Generex Biotechnology could end up, that's a bit trickier. There are several short-term lows we could tap, but I think the $0.27 mark (from April) had the biggest impact then. Let's start with that as a tentative target for GNBT, though I'll also be playing this one by ear.
If you'd like to know of any changes in our opinion of GNBT, CTIC, and UXG (or if we officially recommend them as trades), be
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