Sep 10, 2010 8:47 AM PDT
It's a war zone out there, and if you're not careful, it's easy to get caught in the crossfire between the bears (who at this point I think we can say are either the true amateurs who are terrifed, and/or the top professionals who are driving prioces lower so they can buy cheap stocks), and everyone else (who knows stocks are ripe for a bounce, but don't want to step in front of a moving train). While I still contend we're closer to a bottom than not, a few small caps I know many of you are interested in need some special attention.
One of them is YM BioSciences Inc. (USA) (AMEX:YMI). I know on the surface it looks rough right now - the downtrend is now more than a month old, and today isn't helping. Just bear in mind that YMI looked just as troubled in February right before it found support - again - at $1.12 and bounced up and out of its funk. In fact, that's why I'm bringing YM BioSciences up today; we're appoaching a known floor around $1.12. Expect it when you least expect it, especially from a small cap. In other words, keep an eye on what happens at $1.12.
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Not that being 'up' today is a sole reason to step into Banneker Inc (PINK:BANI), but it's sure not a reason to avoid it... a small cap that's finding buyers on this terribly bearish day? It's worth mulling.
And like I said, it's not just the fact that it's higher today that has my speculative gears turning. This pink sheeter has attracted a ton of buying interest out of nowhere over the last four days. I suspect there's news on the way, and it leaked. Still, once any Banneker news officially hits, I think we'll see this chart get some more bullish traction. It's still just a 'funny money' idea though.
No, it's not a small cap stock, but AutoZone, Inc. (NYSE:AZO) is one of the few stocks that's up today, and that has me worried. Why's that? My fear is that the gain will draw a buying crowd, inspired by thoughts that AZO is the only salvation on a bearish wasteland.
Folks, let me tell you, I'd be locking in gains on AutoZone as soon as a I could. There's nothing wrong with the company, but there's something wrong with the chart.... it went from overbought to way over-extended today, and it's always better to get out on the way up than it is to try and pick a spot to get out on the way down (and I think that trip down is right around the corner.... "buy the rumor, sell the news").
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