Action Sports company Execute Sports experienced some price weakness this am trading down to 41 cents in the early going. With that, the shares almost hit the 5/8 re

tracement of the recent up move. Here’s the chart:

While the shares at 39 cents look an ideal entry point, they may not get there. Risk-oriented investors may want to take advantage of this selling to pick up some shares in the low 40-cent range. Also, volume on this pullback–so far–is low, which, if it ends the day lower on low volume that is constructive. Or it may just pop once the selling dries up.

Read our March 24th piece for background on this extremely compelling company.

Don’t ya just love the SmallCap market?

Trade Safely.

As we mentioned, the 33 cent level for Sense Holdings represents a critical level. Here’s the chart:

Tuesday, the shares did almost a million shares, which continued a series of large volume days for the stock. The problem is that the volume didn’t advance the shares, which is annoying. The price is up against the 5/8 retracement of the large down move that ended at the beginning of this year, and while recent action has been constructive, large volumes with no volume isn’t.

We look for a new catalyst to blow the stock through that 33 cent level. The company tends to release news frequently, so grabbing a few shares in this range for the long term is likely ok. If it dips into the high 20-cent range, buy more. Just make sure you have at least a bit now in case I’m wrong–it happens– and a new upleg appears.

Trade Safely.

If I get one more email from a reader who has wrongly read an insider trading report, I’ll scream. Maybe I will anyway.

When an insider files a form 144, it is an indication of an intent to sell at some point, not a sale.

The way the system works is that an insider or large owner must have that form in place before an actual sale takes place. A 144 has a life of 90 days, so continuous refiling makes sense in case one wants to sell at some point and not wait the three weeks or so to get a 144 approved. Once there is an actual sale, a form 4 is filed. So please, just because there might be a lot of “Planned Sale” entries in the insider trading section of Yahoo, don’t merely assume that everyone is bailing out. They’re likely not and either tax planning or just being prudent. As well, in a lot of cases, stock makes up a significant portion of a smallcap employee’s compensation. Perhaps the person needs a new roof, car or braces for a kid’s teeth.

Anyway, y’all can read the second portion of our recent SmallCap article on the subject.

Trade Safely

Relatively speaking… We chatted about Sense Holdings the other day–here’s the piece– with the shares at 24 cents. They cracked 33 cents today, and while that may not seem like much, it is an almost 40 percent rise in a few days. Here’s the chart:

I feel that the shares will attempt a test of that .618 retracement at 33 cents. Traders may want to take some profits as there could be a pullback allowing another decent entry point. Now it gets a bit complex: if the shares move lower from the 33-35 cent range, you might consider adding a bit more. If it just runs to 34 cents you’d likely want to take a chunk off the table. A core holding is certainly warranted for the long-term, but the action shows that traders can have a bit of fun while keeping some long for the long-term.

Volume is very constructive as the shares have strung three days of great volumes together to backstop the rise. The company also released news regarding some nifty biometric technology for Port Security and Cruise ships, late yesterday. With more news likely out there, this is definately one to own and trade. Finest kind of smallcap… Keep some, trade some, lower your cost base.

Trade Safely.

Over and above the fact that Novelos has made amazing progress in less than a year, the chart is looking extremely interesting: We see a confirmation in the weekly of the coveted double repo which is a good indicator of a change in direction. The closes above, below and above the 3×3 line could well herald a move higher. As well, since the shares bottomed at $1.50-ish, daily volumes have grown nicely without moving the shares. Accumulation is good. Usually denotes good support and that looks solid at these levels. Investors have obviously put their dollars into the shares in approval of the recent financing. All cylinders appear to be or on the verge of firing. All one has to do is spend some time getting to know the company, note its progress and see how undervalued it is relative to its peers to quickly arrive at the point where accumulation makes sense. Apparently, given the growing volumes, a large number of patient shareholders are already there, accumulation-wise. Worth having some shares at these levels and buying on dips, should they occur. Looks like we can expect good things from this biotech name soon, taking fundamentals and technicals into account. Trade Safely.

Bit of an addition, Wednesday. The Company released one of it’s informative letters to shareholders. All interesting, with a bit of an update on CVM’s plans in the bird flu arena with CEL-1000. good stuff. Have a read…

I like it when stocks run a bit and then pullback. Especially when the pullback is nicely above the start point. In the case of biotech CEL-SCI we mentioned from the get-go that 83-85 cents represented a decent resistance area. The shares shot up and have now pulled back in quite a nice consolidation. here’s the chart:

I would bet that around 70 cents is reasonable support level mainly due to the fact that that level represents a good .618 retracement of the recent up move. There’s a good possibility that if it moves down to near 70 cents, the specialists will clean everyone out and a tradeable rally results. The Company’s got some moves left in our opinion as Phase 3 news and other initiatives are released. A core holding is suggested. Don’t be afraid to trade it if the action warrants.

No chart, but a similar situation with boater Xtreme as it scooted from 11 cents to 16 cents in about a day and has backed up a snick to 14 cents. Given that the shares pulled back late yesterday on a few big blocks and didn’t follow through on the downside today is encouraging. the chart looks fairly clear up to 23 cents which is still a decent run from here. Over 60 percent in fact.

Keep an eye on both. I certainly am.
Oh yes, Trade Safely.

Biotech CEL-SCI hit $1.06 Wednesday morning after closing at 89 cents Tuesday. The shares are trading aggressively at the mid 90-cent range at the moment on volume topping 2.3 million shares. here’s the chart:

Due to the fact that the shares had more than doubled at the peak so far, Wednesday, since we Alerted at 52 cents on February 10th, it would seem incumbent upon those who have seen almost a 100 percent gain in less than 3 weeks to do something. As we mentioned in our SmallCap piece yesterday, traders may want to take a bit off the table while long-term investors may want to up their stop losses–either mental or physical–to protect these good gains. Depending on your risk tolerance, stop levels at 85 and 60 cents might suit.

We like CEL-SCI and suspect it has much more room, ultimately, to rise–therefore a core holding is warranted. Remember, the last time we Alerted to CVM back in 2002, the shares moved almost 800 percent in a few months.

The potential is there as is the progress toward eventual commercialization. Phase 3 trials have either been approved –by Canada– and the company is hopeful of approval soon for a Phase 3 from the FDA. This simply isn’t the same company it was three years ago. It has come a long way and appears poised to move to the next level.

Whether you take some profits on a partial position, raise your stop or buy more here, keep an eye on this volatile stock and watch for the whipsaw. In my opinion, maintaining a core position and enduring the swings and roundabouts will prove to be patience well rewarded. The volatility can be significant, so don’t say you haven’t been warned.

Trade Safely.