Stocks are back in the red today after hitting new highs yesterday, and at least two of our three focal stocks today are -
or should - follow suit. Here's a more detailed look at charts of The South Financial Group (NASDAQ:TSFG), Insmed Incorporated (NASDAQ:INSM), and Netlist, Inc. (NASDAQ:NLST).
I congratulate anybody who owned
Netlist, Inc. (NASDAQ:NLST) on or before the 11th. I'll also encourage you to take your profits now.
There's no doubt about it. Netlist, Inc. was one of the biggest gainers over the last week, on what was essentially 'real' news. But, NLST surged more on hype and hope that actual results; an 'unveiling' or the launch of a new product does not put dollars in your pocket, which has been the company's shortcoming of late.
I think now's the point where that reality starts to sink in. In fact, between yesterday's gap on huge volume and today's tepidness, it may be that there's nobody left to buy Netlist, Inc. shares.... seriously. In short, NLST is fully played out - the party's over and there's no more room for hype.
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I know it's hard to imagine things could get any worse for
The South Financial Group (NASDAQ:TSFG). But, I've got a bad feeling they could...and will.
I had to zoom out to a weekly chart to show you this, but The South Financial Group is close to making new multi-year lows. There's a support line around the early-2009 lows of $0.66, while the stock's currently at $0.65 (I'm giving TSFG just a little wiggle room here).
If, however, this stock sinks any further -
as in to $0.63 or below - I'm willing to bet anybody who owns but The South Financial Group shares right now will be spooked enough to go ahead and dump their positions as well. This will, of course, start a domino selling effect.
The one potentially-saving quality for TSFG is how volume has been shrinking on the way down. The stock's still walking a very thin line at this point though.
It's almost imperceptible to the naked eye but
Insmed Incorporated (NASDAQ:INSM) is indeed staging a recovery effort. In fact, a major resistance line has already been snapped.
If you squint just right, you'll find but Insmed Incorporated shares are above a falling ceiling line that was pushing them lower over the prior five months. What you can't quite see is how the volume for INSM has flipped from net-bearish to net-bullish within the last two weeks. You can barely even see how the accumulation-distribution line is now pointed upward again.
It's still pretty speculative, but if you like high-payout coin tosses, Insmed Incorporated would be a good with that lingering June gap between $2.25 and $1.18. Be sure to check out a more detailed daily chart to see how INSM has come alive in just the last two weeks.
If you'd like to know of any changes in our opinion of NLST, TSFG, or INSM (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.
