Lots of Buying, Not Much Longevity - Looks at MVIS, FVSTA, and ULU

The buyers are a little off the highs they've created today for the market's large caps, but they aren't backing down much. A lack of volume behind the move, however, hardly screams "the rally is still going strong".  As for the small caps (and micro caps), it's more of a mixed bag....  and much more dangerous strength today for a couple of our focus stocks. Ley's take a look at Far Vista Interactive Corp (OTC:FVSTA), Uluru Inc. (AMEX:ULU), and Microvision, Inc. (NASDAQ:MVIS), starting with the only non-pullback risk.

Even though Uluru Inc. (AMEX:ULU) is down 10% today, in some ways it may actually be the best news current or potential owners of this small cap could have. Why's that? Because it may force the stock to go ahead and play out the pattern that we've all pretty much been looking for from ULU for a while now.

That 'pattern' is a return trip to $0.12, and hopefully a bounce off that floor.  On the chart of ULU below you can see this has happened a couple of times in recent months; what you can't see is that it's been happening to Uluru Inc. well before the earliest part of the chart in view.

You should know a brush with $0.12 is not an automatic buy signal for ULU.  We want to see support verified there like we did back in November, and even better, we'll see some accumulation days around that area push Uluru to higher highs again. The stock's got 3 cents to give up before we even entertain that thought though, so no need to jump the gun.



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Well it wasn't the worst-case scenario that played out with Microvision, Inc. (NASDAQ:MVIS). In fact, my bullishness for this small cap (from March 31st) has played out just like I expected it to, carrying the stock from $2.83 then to $3.55 now... a 25% gain, right up to the ceiling at $3.64 (today's high was $3.69). My only beef with MVIS is that it left itself no chance to bust through that ceiling.

If any of this rings a bell, it may be because this was the possibility I posed last week... that MVIS would run as far as one of two prior ceilings, but not cross them. The $3.27 line was cleared today, but the $3.64 level has not been cleared - and probably won't be now, considering the gap Microvision left behind with the move.    

So, almost needless to say, my advice here is to go ahead and take short-term profits on Microvision, Inc. If you want back in later, that's fine - I just think you'll be able to scoop it back up at a much lower price than $3.58. If you're still mulling an entry after a break above $3.64, you'll want to see a much more founded move from MVIS than the one we saw today. Frankly though, I wouldn't wait that long to step in.... get in after the next decent rebound after a pullback.



If you're reading this, then I'm going to safely assume you're already aware Far Vista Interactive Corp (OTC:FVSTA) is up 185% today; perhaps you're looking to dive in, or maybe you have already. That's fine. I do feel compelled to warn you though, FVSTA is up entirely because of a very intense pumping effort.

There's nothing inherently wrong with that. Indeed, many small cap companies simply need their story told by someone with a big audience. And, Far Vista Interactive is no exception. My only problem with FVSTA is the likely outcome of what happens when the promoters are done touting. All too often, when the pump stops, so too does the buying.

Don't get me wrong... there are occasions when a nice pump-bump gets the ball rolling for a stock of a company that's got a supporting corporate story to sustain a gain. In the case of Far Vista Interactive Corp. though, there's no news.... not even a rumor (that I could find anyway). The odds are just a little too good that somebody's pushing the FVSTA price upward only to unload it on all the newly-excited buyers. Caution is advised.



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