Most of you will know we’ve been paying close attention to micro cap stock Spicy Pickle (SPKL) over the last few days. A major support line at 83 cents was broken this week, and we watched SPKL sink to a low of 69 cents as a result. If that number rings a bell, it may be because that’s basically where the stock hit a low and rebounded in April.

The obvious question is, do we buy or sell here? My honest opinion is that this is a great opportunity to buy. That’s not to say it’s risk-free, but from my point of view this pullback is simply a washout of some selling that’s been ‘on the verge’ for a long time.

And just as a reminder, the same bearish arguments many folks are bound to be making now were also being made back on April 4th…right before the rebound to a peak of $1.01.

The other reason I’m far more apt to be a buyer than a seller here (in addition to a retest of a key support level) is the shape of the daily bars the last three days. Tuesday and Wednesday were fairly harsh, and on significant volume. Thursday was bullish - in the face of marketwide weakness - on slightly better volume.

It’s your call, but small cap and bulletin board stocks have a way of zigging just when it looks like they’re going to zag. I’m expecting the less obvious possibility to play out, based on my past experience.

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