Yes, the market's up today, but I'm still not sure I'd trust it. We're still in a lethargic market, and if you want to make any real money, it looks like you're still going to need to be a stock picker. Enter China Auto Logistics Inc. (NASDAQ:CALI), SGOCO Group Ltd (NASDAQ:SGOC), and DynaVox, Inc. (NASDAQ:DVOX). Here's the deal.
They say the third times' the charm, and if that's the case here (as I believe it is), then the SGOCO Group Ltd faithful have something to cheer about.... finally. As the nearby chart indicates, SGOC has taken a couple of swings at breakout effort since November; today's the third, though this one's a lot more anemic than the prior two. This one's still got something the prior two short-lived surges didn't have though, and that's a well-established base, or launch pad.
See the purple and blue moving average lines? Those are the 50-day and 20-day moving average lines, respectively - key moving average lines that frequently play a role in a stock's ebbs and flows. SGOC tried to rally previously without the benefit of pushing off of those key moving averages. Granted, the ridiculous size of those surges may have helped spell their doom, but a lack of a floor didn't help. Now, however, SGOCO Group Ltd shares are starting out on the right foot. If we see a close above the 100-day moving average line at $1.27, look out above.
The last time I looked at China Auto Logistics Inc. in a bullish light was on November 14th, when it was trading at $2.79. By the end of the next day, CALI closed at $5.66, though it has peaked at $7.48 that day. Not bad for a day's work... a gain of somewhere between 102% and 168%, depending on. The problem is, while I was right, I was only right for a day and a half. That surge also burned up all the stock's fuel, and shares went into a dive that lasted nearly two months, and brought the stock all the way back to a low of $2.56.
So why bring it up again? Because I've got a feeling the CALI bulls are gearing up for a similar move today, and I want you to be ready to get in - and out - again and maybe score a decent win in the process. Specifically, I like the way China Auto Logistics simply needed to kiss its 100-day moving average line yesterday to spark a high-volume rebound today. It'll take some guts, but sometimes the rewards go to those who stick their neck out (as was the case in November).
Finally, just an old-fashioned, straight-forward turnaround... from DynaVox, Inc. If the name rings a bell, it might be because I pointed it out as a budding bullish play back on December 31st. DVOX was trading at $0.38 at the time, and I likes the way it was fighting to get back above some key moving average lines and out of a bearish channel. Now it's at $0.42, which isn't a heroic move on paper, but the rebound effort has really solidified - and is starting to accelerate.
The chart below says it all. DVOX has continued to make higher highs and higher lows (albeit erratically), and this week has started to do so in higher volume. The 20-day moving average line kicked in as a support level too, right before it crossed above the 50-day moving average line. There still seems to be some resistance for DynaVox right around $0.41, and the 100-day moving average line at $0.47 might cause some turbulence too. But, the effort is well underway now, and could be worth a swing as it is.