Sep 10, 2010 8:47 AM PDT
Remember yesterday when I spotted how Conspiracy Entertainment Holdings shares were looking legitimately bullish based on growing accumulation? Yeah, well, NuEarth Corp (PINK:NUEC) has already popped up on the same radar today. We've seen a ton of buying swell up over the last week and a half for this small cap, and fortunately, we've not yet seen the stock's price race out of control.
The good news is, there's no clear known reason for this strength from NuEarth - it's happening organically, which means it has longevity. The bad new is, I can find very little about this pink sheet company; I'd like to have at least a reasonable guess as to why it may be budding. Either way though, NUEC is percolating, and should at least be on your radar; the reason for the move will be out soon enough. 
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If the whole scenario were a little different for Taseko Mines Limited (USA) (AMEX:TGB), I might not care or even bring it up. It is what it is for this small cap stock though, and what it is isn't good.
As of this morning, Taseko Mines Limited shares have fallen under their 200-day moving average line (green) - a few weeks after breaking a long-standing bullish support line (blue). While that's not inherently a bearish sin, for TGB, the 200-day line has been a pretty significant make-or-break level.... even going back well before the period you can see on the chart. While I expect to see the bulls push back a little, in the grand scheme of things, the damage has been done.
It's fun to be right, but it's also miserable if it's nearly impossible to capitalize on the right call for a chart. Such is how I feel with small cap Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) right now.
After posting some bullish comments on it back on the 24th, I caught a little crap. Here it is today, up 14%, and up 12% from when I made the call... thank you very much.
While I'm glad the expectation was right, I have to be honest - Arena Pharmaceuticals is anything but a buy at this point. Yes, the 200-day average (green) at 3.46 was hurdled. However, we left behind a gap to get there, and gaps are something ARNA has not been accustomed to making or handling. While the bigger-picture uptrend is still intact for the same reason I suggested last week, I'm pretty sure the short run is going to reel this chart all the way in before the next leg higher. So, take that for what it's worth.
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