With the broad market still struggling to hold onto the gains made since early June, it would be easy to think there aren't any long/bullish trading opportunities to be found right now. That's not how things really are right now, however. A handful of small cap stocks like Acme Packet, Inc. (NASDAQ:APKT), Complete Genomics, Inc. (NASDAQ:GNOM), and Opexa Therapeutics Inc. (NASDAQ:OPXA) are all actually perking up, and showing signs that more upside awaits ahead. Take a look.
While Complete Genomics, Inc. shares had nothing less than a miserable 2011 and a relatively weak 2012 (so far), the tide has turned as of today. Though GNOM finally hit bottom in mid-May and has been riding an upward-sloped support line (orange) aver since, it wasn't until today that bullish effort managed to move above the 200-day moving average line. The nearby daily chart illustrates this, but it's this weekly chart that really puts into perspective how big of a deal this is.
GNOM is one of a few genome sequencing plays that's getting real traction. In fact, the company has a backlog that's getting longer rather than shorter. Though not profitable and not expected to be anytime soon, the strong rising revenue validates the industry, and this company. Complete Genomics may not have the makings for a true long-term holding, but the chart's current action says we're due for a near-term breakout effort.
In the same vein as Complete Genomics, Inc. is about to witness, Opexa Therapeutics Inc. has watched its share price bolt past the key 200-day moving average line today. The move finalizes a major turnaround effort that's been underway since early July. Just don't nibble too soon, though, since OPXA is still overbought thanks to the big three-day move. We'll probably see some profit-taking push the stock downward for a bit before the bulls regroup and restart. The hard work's been done though.
OPXA is a biotech player, focused on patient-specific treatments for autoimmune diseases. Its flagship development is Tovaxin, aimed at multiple sclerosis. There's been no news from the company - or even about the company - to light this kind of fire under the market; it's just happening for organic reasons. That may be a good thing for Opexa Therapeutics owners, but one has to wonder if/when it could turn-tail just as quickly, for no reason. For now though, the chart is what it is.
Last but not least, while Acme Packet, Inc. has made a pretty decisive reversal effort following the July 27th plunge (complete with a bearish gap) and subsequent rebound, the $17.90 mark again because something of a make or break line, holding the rally back in early and mid-August. As of today, however, APKT has punched through that resistance and is on a roll. In the shadow of that V-shaped reversal, this could be a big, strong move.
APKT makes telecommunications equipment, primarily for the IP/VOIP market. Sales and profits were growing like crazy through 2011, but the company hit a wall in 2012, with sales dwindling so quickly that Acme Packet actually swung to a loss last quarter. The buzz today is that it's now a buyout target, which isn't too much of a stretch to believe, but hardly 'firm' either. But, whether it's a target or not right now is irrelevant. Right now, the shares just popped above a key resistance level, and have a ton of ground to make up.