The market may be lethargic today, but that's only because it's feeling the weight of recent gains. For stocks like BGC Partners, Inc. (NASDAQ:BGCP), Bio Matrix Scientific Group Inc. (PINK:BMSN), and Dynatronics Corporation (NASDAQ:DYNT) that are only starting to run, there's plenty of upside left to tap.
Last year was nothing less than disastrous for BGC Partners, Inc. The stock fell from a peak of $8.04 in March to a low of $3.11 in November. By that point pretty much everyone had left BGCP for dead. As is so often the case though, that complete and utter lack of interest is the best time to buy. Don't worry if you haven't stepped in yet though - this rodeo is just getting started.
The nearby chart makes things pretty clear...BGCP was able to stop its bleeding in December, and even start to make some higher highs by January. But, a ceiling formed around $3.82, and as long as it was in place it would be tough for would-be owners to be fully convinced there was any upside here. Well, BGC Partners has blasted past that ceiling today, on what will be a very high volume day. While it may be a tad overbought in the short run, the heavy lifting has been done.
It may not have been pretty while it was happening, but sometimes it's the ugly duckling setups that turn into the most beautiful swans.... trades. Bio Matrix Scientific Group Inc. shares have been fighting to make higher highs and higher lows for a while, and that effort paid off on Tuesday when the stock finally pushed above the 200-day moving average line. Yes, since then BMSN has been lethargic, but like BGC Partners, the hard work has been done here. Now the bulls just need to regroup and rekindle the effort.
All that being said, if you wanted to add an element of safety to any trade on BMSN, you could wait until the horizontal ceiling at $0.0045. That's where the rally's been capped for the last three days. Although Bio Matrix Scientific Group are going strong enough to eventually punch through, that's the last line in the sand worth worrying about.
Last but not least, if you're looking for something a little bit longer-term (and are willing to be patient), then Dynatronics Corporation needs to be on your radar. As the chart below illustrates, DYNT broken through a second major resistance level (at $3.79) today, sealing the deal on a reversal effort that started back in mid-December with a high-volume capitulation. The gain since then is more than just mere volatility. And, there's a ton of upside to reclaim after 2011's big tumble.
DYNT makes and sells medical equipment, with a focus on therapeutics. It had been close to getting delisted, but has since won the NASDAQ's favor (and listing qualifications) again. There's no news driving this recent strength, however, though that may be a good thing for Dynatronics... proof that it can rally on its own, organically. Or, maybe somebody knows something we don't. Either way, the bulls are picking up steam.