I know that there are folks who read here, but have not as yet signed up for the SmallCap Digest up in the left corner. Why? Beats me. Since I’m a nice guy, here’s a snippet of today’s issue:

NASDAQ TECH PICTURE:

Our trend indicators still remain positive, as a matter of fact, NASDAQ is showing leadership to the overall markets right now. Basically we’re just seeing profit taking, so this pullback is healthy, wouldn’t surprise us to see the comp pull back to between the 2024-2006 confluence area. Following that occurrence, we should see a nice short-term rally from there. If that level fails, the next stop is 1973.

We still like Biotech and Drugs, some Tech, and oil shows no sign of weakness to date. Given that the easy money has likely been made in oil, probably best to stay away from oil-effected stocks. Should the market bounce to the 2085-2100 levels, we feel that buying there would be risky, as short money will likely appear at those levels.

If you want the rest, why not sign up? We’re talking oil, interest rates and a whole bunch of other stuff…

Corning makes, among other fragile things, the LCD screens for notebooks, computer monitors and those way cool big screen tv’s. Dads likely want all three…The chart looks constructive:

The share price appears to want to go higher, but might be good to wait until the shares back up to our 3×3 line, say around $16 or lower. Buy on dips. 2006 earnings projection is 87 cents which is a p/e just under 19 times.

Biz and company seem solid and recent announcement of a 20 million share offering likely now priced in. With 1.4 billion shares outstanding already, 20 mill is a tiny blip in the dilution pool. Proceeds will be used to reduce debt–currently north of $2 billion.

Your dad will thank you. Even more if you buy him a new Big Screen.

BTW, on Tuesday, we put out a piece in the newsletter on why we feel that there is a boom coming in biotech. Notice that the iShares noted in the piece are up nicely this am. See? It pays to subscribe to the Smallcap Digest as well as access the blog. Top left corner will take your entered email address. We won’t compromise it. Promise.

Trade Safely. Dads’ especially!

Pink Sheet listings aren’t conducive to rationale trade. I have had lots of emails assailing Biocurex for not getting off the Pinks and on to a legit exchange. In discussions, that is very much on the companies mind and it is working to that end. Nobody wants to stay on the Pinks.

As we postulated, once the stock broke the .618 support area convincingly, a whole new wave of selling came into the stock. However, we noticed that once the stock broke $1.00, it was heavily supported. This wash and rinse move it made by breaking down hard and snapping back on good volume suggests it will take quite a bit of negative momentum to go lower from here. I like the risk reward ratio at current levels. It will likely remain volatile for all the reasons previously noted.

I’ll continue to follow BOCX, as the potential, IMHO, remains amazing in the long term.

Trade Safely.

No question May/June is a goofy time for smallcaps. Everyone, for the moment, seems fixated on the Big Guns, which, ironically aren’t doing much either.

One that has been smoking a bit, maybe just a strong puff, is data integrator Informatica. What there has been is a pant load of news on the company and as a result, it hit $8.94 this am, which is a nice pop from when I first brought it up at around $7.50 a few months ago. Here’s the chart:

The trend indicators remain positive, however, it is due for a pullback after a nice run. This is a weekly chart which suggests that the stock is headed for a .618 retracement of its big selloff last year, a target of 9.80 looks pretty good.

Bears (ah, a pun) watching and owning as it is not only a good company, but about the only company left in that space that hasn’t been snapped up by one of the majors. As I’ve said, buy it for the business, not for the takeout. All things in time…

The rest of the ponies in our stable seem content to stay in their stalls until the market heats up, likely later summer/fall. A smattering would be worthwhile as all will have news and the market will come back to them. One can only buy so miuch google at $300. Mommy…

Did a piece the other day on Biophan and MIV Therapeutics. These are exciting companies doing incredible work in areas that will save lives and cut healthcare costs. BIPH has moved up a lot in the past months, but the growth and closeness to licensing/commercialization will likely drive it higher over the next while. Not a one trick pony, the company has a plethora of way cool products.

MIV has been idling since I brought it to you at 34 cents. Now around 60 cents, it has lots of potential to move, especially if it saddles up with some big partners.

Keep an eye on both and a hand on your heart….

Also did a short squib on Stream Communications–the cable company wiring up Poland.Now number 8 among hundreds of companies in the country, it’s the only listed Eastern European cable play. Smoking growth over the last year, great volumes and the pps is cruising toward 90 cents. A biz model that includes strategic acquisition growth at bargain prices, Stream looks a winner over the net 6-12 months. Blue ribbon management and board with doiubtless more good news to come. Unique in the barn…

And of course, Spectrum which for the life of me continues to be draggy. What does the market want? Potentially $100 million in revenue this year, $11 million last, no debt, good cash and new sizeable contracts almost weekly. At $1.10 seems a no-brainer, but I’ve liked it higher, so go figure. Unless there’s something afoot, it should be owned. Just cause the market hates it means nothing. When it likes it again, it’ll be too late. Could it go lower? Of course. It just seems the best bargain out there at the moment, unless I’m missing something, which is always possible.

OK, send in the comments.

Trade Safely.

We called the rally to this level, now I think it’s time to tread lightly and not get too exuberant. I think the market pulls back here. That eventuality would also be healthy as the comp has simply retraced the year’s selloff up to the .618 and cleaned up. Much of this rally was short covering and we suspect the market will pull back soon allowing better entry levels to the long side. As you can see, all of our indicators are reaching the upper end of their trend phase, which suggests selling is much safer here than buying.

Markets don’t go up in a straight line and this is likely no exception.

We’ll look at some stocks early next week. I’ve been offline for a few days due to some family stuff. Back in the saddle next week. Always up for comments and discussion so don’t be shy.