Three Bears of a Very Different Color: CAK, CXM, and CIGX Explored

First and foremost, the fact that the tickers for all three of these small cap stocks start with the letter 'C' is a total coincidence. I just thought the charts of Star Scientific, Inc. (NASDAQ: CIGX), CAMAC Energy Inc. (AMEX: CAK), and Cardium Therapeutics Inc. (AMEX: CXM) were the most interesting (and potentially trade-worthy) to talk about simply because these three bearish scenarios are all still so amazingly different.

Take Cardium Therapeutics Inc. for instance. Yeah, it's down 14% today and hitting new lows. I gotta' be honest though.... I'm looking at this chart of CXM, and I'm getting bullish.

Say what? It's true. It may be the trading equivalent to playing with matches or running with scissors, but I see a capitulation trying to materialize for CXM here. It's a high volume plunge after a long, drawn-out decline - there can't be that many sellers left, if any. And, we've seen a fleeting effort to pull Cardium Therapeutics up and off its lows for the day. Maybe a one-day wait wouldn't be a bad idea, just to see where it goes. If you're a gambler though....

I don't exactly have anything 'new' to say about Star Scientific, Inc. I do want to repeat something I've already mentioned about CIGX a couple of times though, especially after seeing today's sharp high-to-low move after yesterday's similar high-to-low move - WATCH THAT FLOOR AT $4.05!

We've not seen any trades under it yet, but subsequent retests of it as a floor has come after a lower high has been made (yellow), and all of this as happened after CIGX fell under two key rising support levels (blue, purple) early in the month. Now the 100-day moving average line has moved up to the $4.05 area, so any trade under that level is going to be doubly destructive for Star Scientific. Never even mind the fact that this is one of the market's most overbought small cap stocks, still up more than 100% since February.

Finally, if you're looking to see the kind of potential breakdown that makes me worry about Star Scientific, Inc. , look no further than CAMAC Energy Inc. This chart has been knocking on the door of support (orange) at $1.18 since March, and today the bulls answered. CAK fell to a low of $1.16, and hasn't looked back.

Granted, you can chalk a lot of the demise up to the market. It doesn't really matter though. Small cap stocks, including CAK, are just as apt to take on unfair technical damage (and just have to deal with it) as any large cap stock is. Besides, it's not like CAMAC Energy wasn't already in a downtrend.