Sep 3, 2010 9:02 AM PDT
Do you ever wish you knew about a big stock move, you know, before it actually happened? While nobody has a time machine to be able to do so with perfection, if you read the clues right, you might be surprised about the kind of jump you can get on the trading crowd. With that in mind, here are four bulletin board names that have seen some serious accumulation over the last few days, with no particular explanation. This kind of buying volume, however, is often an omen of rally-inducing news around the corner.
It may have gotten a little ahead of itself today (and is paying the price for it), but American Commerce Solutions, Inc. (OTC:AACS) has seen more buying over the prior two days than it has in months. And, the move did manage to carry AACS to new highs for the year, even if temporarily so far.
That it itself isn't a show-stopper, but when combined with the fact that American Commerce Solutions handed over a few bullish moving average crossovers, this bulletin board stock is compelling. The 200-day line at $0.002379 seems to be the key.... even though it's unusual for a sub-$0.01 to see that kind of action from a long-term moving average.
Granted, all of the recent 'accumulation' of China Medicine Corporation (OTC:CHME) has actually been made today, but it's interesting progress all the same - if it can just hold onto it.
Today's buying has taken China Medicine Corporation above the resistance of its 20-day moving average line (blue) at $2.46, which up until today had been a strong ceiling. It remains to be seen, however, if this stock can hold above that line, or cross above the newest barrier - the 50-day line (purple).
CHME is being heavily bought though (relatively), as it has been over the last three weeks. It just needs a lot more technical progress to be 'worth it'. Still, something to put on your list of small cap stocks to watch. 
----------------------------------------------------------------------
Sign-Up for Free to Receive Future Commentary and
Trading Alerts on KBLB, CHME, NPDT, and AACS.
----------------------------------------------------------------------
Yes, like China Medicine Corporation, the bulk of the buying for small cap stock Kraig Biocraft Laboratories Inc (OTC:KBLB) has been today's effort. Take a closer look at the chart below though - the buying volume has been building modestly for a while (yet there's still lots of upside room to run).
When you take a step back, you can still see that KBLB is in a sideways trading range, framed by a couple sets of blue lines (the main range is contained by the heavier blue lines). But, given the cross above all the key moving averages, and the persistent knocking on the door of resistance at $0.015, I just get the feeling something big is brewing with Kraig Biocraft Laboratories 
And finally, Newport Digital Technologies, Inc. (OTC:NPDT) is making its way into my column today after showing up each of the last three trading days on my accumulation-warning scans. While I'll be the first to acknowledge this bulletin board stock chart is overbought - past the point of merely intimidating - I also have to acknowledge this last three days have broken NPDT out of its technical rut.
So how do we dance with this small cap in this delicate situation? I don't see enough upside in the current risk/reward scenario to say Newport Digital Technologies is a buy right now. Indeed, though it crossed above its 100-day line today, it's painfully overbought. If this OTC name is the real deal, it will bounce back after its first setback. So, we wait..... wait for the next bullish wave - if there is one. If there is one though, holy cow what a big win this could be. It's definitely worth monitoring in the meantime.
If you'd like to receive further updates and any changes in our opinions on AACS, KBLB, NPDT, and CHME, or if you want our next batch of 'early accumulation warning' stocks, be sure to sign-up for the SCN Newsletter today! It's FREE.
