Sep 3, 2010 9:02 AM PDT
I hate trading in volatile and indecisive markets. Working n the extreme ends of both bearish and bullish pressure just makes it tough to distinguish between market trends and stock-specific trends. With the dust settling today though (and for a while, I feel), I can finally start to make reasonable assessments on a few small cap stocks I've had on the radar for a while.
I'd be kidding myself (and you) if I said that at least part of the reason I liked Central European Distribution Corp (NASDAQ:CEDC) had nothing to do with the fact that its oversold, and ripe for a bounce - that is part of the reason I'm digging CEDC at this point. There's more to it than just that, however. It's the strength and persistence of the bullishness we've seen over the last four days that's sold me on Central European Distribution.
Four closes above the open, three of which were higher than the prior close? Four strong volume days each time? (I'm pro-rating today's volume.) The bulls are getting serious here.
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I suspected the worst was in store for Altair Nanotechnologies, Inc. (NASDAQ:ALTI), and I don't think I was wrong after seeing today's action. Lots of small caps were struggling over the last month or so, including ALTI. The problem is, this chart is still knocking on the door of lower lows while most other stocks are picking themselves up off the mat. Not good.
If Altair Nanotechnologies breaks under the last bastion of support at $0.50, that should jump-start another round of selling.... something this stock is used to.
And finally, a non-technical (yes, the 'f' word..... fundamental based) pick I've been kicking around for a while - Amkor Technology, Inc. (NASDAQ:AMKR). With a current P/E of 7.5 and a projected (2010) P/E of 5.8, I can't pass up this small cap semiconductor stock any longer.
That said, I'd be kidding myself if I said there wasn't at least a little technical rationale behind the timing of my Amkor Technology bullish call. AMKR has made a support line out of the $6.00 area, and appears to be pushing off of it now with a little volume.
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