We really hope you’ve been following our recent trading ideas. Why? Our recent small cap stock pick Overstock.com (OSTK) today reached our target price of $30.20. With a purchase price of $22.80 back on September 7th, that means we gained 32.4% in a little less than a month. Not too shabby at all, eh?

While we still like the stock’s upside potential over the course of the next few months, this chart was starting to get a little overheated. Today’s big move only compounded the problem of being overbought, so we’re glad to be out. As the old adage goes, don’t be afraid to sell into strength and buy into weakness, even though your intuition is programmed for the opposite.

When and if we really get a good-sized chart pullback (not a dinky half-point one like we saw in late September), we may then jump in again…provided we see some short-term evidence of an upside move. In the meantime, enjoy your profits.

We hope to have another trading idea for you soon…maybe within the next couple of weeks. Keep an eye out for it.

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