More Trouble Than Opportunity Ahead - Looks at NRPI, CXM, and CRUS

It's not just the fact that Cirrus Logic, Inc. (NASDAQ:CRUS) gave us a bearish outside day reversal yesterday that has me thinking pessimistically on the stock. In fact, this small cap is up today. Rather it's the combination of that drastic turnaround with two other factors... 

First, Cirrus Logic was rated as the 'most bullish' stock this morning among stock-trading message board users. Regular readers will know this is a kiss of death, as the crowd is most wrong at the time they're certain they're most right. Second, I'm looking for a substantial pullback from CRUS now, as the stock's just plain overbought at the same time we saw the two other bearish clues.

An unpopular opinion? I can hear the hate mail already. It doesn't change the reality though (which right now has nothing to do with the company's merits - it's all technical).

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I gave you this warning about Cardium Therapeutics Inc. (AMEX:CXM) back on June 10th. Yesterday, those worries were validated when CXM broke under the support line at $0.44, and hit a new multi-year low of $0.38. Though it's up a hair today, the damage is already done.

The chart of this small cap below retells the story pretty clearly - Cardium Therapeutics had made a string of lower highs, but the bulls were holding the line at $0.44.... until yesterday. While we should see a small bullish pushback now, by the time this stock could get back into a position to recross the $0.44 mark, the lower of the two falling resistance lines should be right there, pushing it lower again.

And finally, something bullish, even if speculative....

I don't know what's going on with NRP Stone, Inc. (PINK:NRPI), other than the fact that they're "in operation".... a minimum requirement on my book (and I do mean minimum). And frankly, I'm not even really sure I care what's going on with it. All I know and care about is that this small cap stock is being heavily accumulated, which means a pop may be brewing.

If I had to guess, I'd say NRP Stone is the beneficiary of a pumping/promotion effort, though I could find no hard evidence of such. (If you can confirm it, please let us know and post a link below.) The thing is, that doesn't really bother me - we may be able to tap a free ride from the table-pounding. Just don't be the last one off the NRPI train.

As you may suspect based on that, this is a 'play it by ear' call - there's no particular target in mind.