Thursday gave us some explosive moves from a handful of stocks, but what's next after all the volatility? Here's a closer look at what you need to know about Comstock Homebuilding Companies Inc. (CHCI), Cybex International Inc. (CYBI), Majesco Entertainment Co. (COOL), and Strategic Hotels & Resorts, Inc. (BEE).
A little good news regarding cash flow accommodations for
Comstock Homebuilding Companies Inc. (
CHCI) went a long way for the stock. Shares blasted out of a triangle shape that had been forming since late August, and CHCI ended up gaining 50% for the day.
Normally we'd shy away from a monster move like that, particularly when there wasn't a strong chart base. In the case of Comstock Homebuilding Companies though, we may make an exception. The buying volume has actually been flowing in since last month, and the stock is prices at about 1/20th of its peak 2005 value.
Though CHCI looks bullish, prep for volatility.
Despite the 16% dip today from
Majesco Entertainment Co. (
COOL), there's still a bastion of hope for those of you who needed the stock to hold up ... there's support around $1.50. That price also happened to be a resistance level in April and May, so don't take it lightly.
That said, the head-and-shoulderish shape that's formed since June doesn't bode well for Majesco Entertainment shares, nor does the volume behind today's selling. We think COOL is headed lower, and suggest using a break of $1.50 as the sell trigger.
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As we said of CHCI, we're not big fans of chasing strong breakout moves, but we're willing to make exceptions.
Strategic Hotels & Resorts, Inc. (
BEE) is another one of those exceptions. The stock's 39% jump on Thursday pales in comparison to the near 100% decline it saw between 2007 and the end of 2008. It's been slowly climbing out of its rut since then; the pace quickened today.
The only remaining hurdle BEE may be facing is a ceiling at $2.29, where the stock peaked in January. It was a different time and scenario then though, so it may have been forgotten. Still, we do think Strategic Hotels & Resorts shares are set top be reeled in temporarily. Today's strong volume, however, should be a hint that the overall trend has made a paradigm shift.
Just wait for the dip.
And finally, don't sweat the 15% pullback from
Cybex International Inc. (
CYBI). The stock had a little unfinished business to take care of... the gap between Tuesday and Wednesday had to be filled in. And, it was. We don't think it was anything more than that though (meaning we don't feel it's a sign that CYBI is headed to $0.00.)
The key here is volume.... we saw lots of it for Cybex International on the way up yesterday, and we didn't see nearly as much of it on the way down on Thursday.
That said, note that resistance had formed on the CYBI chart around $1.50. That may be a support level now.
If you'd like to know of any changes in our opinion of COOL, CYBI, BEE, or CHCI (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered 2 to 3 times per week.
