News Details – Smallcapnetwork
Watch Oakridge Global Energy (OGES) on TV This Weekend, and Just Watch Intelligent Content (ICEIF) Go
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February 2, 2024

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PDT

How was everybody's trading week? You know, the market may not have moved ahead like gangbusters, but all things considered, it's still pretty darn impressive to see the market at least hold its ground. The bears have every right and reason to pull the rug out from underneath the market here, but they didn't. We'll talk about it in a moment. First, before I get a chance to forget, I want to show you something for a couple of our Featured Stocks. First and foremost, don't forget this weekend is when the three-part series about Oakridge Global Energy Solutions (OGES) starts to air on the Fox Business Network. The first one is scheduled to run at 1:30 pm EST on Sunday, July 31st. I don't know when the next two segments are going to air, though I'd suspect FBN will say sometime during the first half-hour segment. In case you forget (or didn't know in the first place), Oakridge Global Energy Solutions is a company that's come up with a better lithium battery. Lithium batteries are what power our cell phones, laptops, and even electric vehicles. They're much better than traditional alkaline batteries, and not just because they're rechargeable. They also give you more volts per ounce and per cubic inch. As good as lithium-ion batteries are, however, they're still not quite as good as we'd like them to be. Oakridge Global Energy Solutions has achieved that proverbial last mile with lithium-based batteries by restructuring the chemistry and design of the battery. It's not overdoing it to call it a game-changer. Government wants them. Corporations want them. Consumers want them. This could be a company doing a billion dollars worth of business by 2020, up from nothing last year. We talked more about the science in our first look way back in February with our first look. My suspicion is, as is so often the case after some major national TV exposure, we could see OGES really perk up come Monday. The other name worth a look today is Intelligent Content Enterprises (ICEIF). Yes, it was only yesterday we examined the budding reversal effort from ICEIF, but after today's 6% follow-through we're even more convinced this is all going somewhere. Not only was the buying volume once again strong, but today's move also carried the stock back above the 20-day and 200-day moving average lines. Sometimes you just have to take the hint. Speaking of volume hints you have to take, there was nobody more surprised than me that today - a Friday - not only did the S&P 500 reach a record high and put some real pressure on a big technical resistance line at 2175, it did so on higher volume. People were getting into stocks at what was arguably the riskiest day of the week to do so. Like they say, don't fight the tape. The 20-day moving average line has now had a chance to catch up and step up as a support level. What's killing me here is the VIX. It's too low. Maybe that's the old-schooler in me that thinks traders behave predictably now. But, I was reminded by a buddy today that we can't have blind faith in everything all the time. Case in point? Check out some of the headlines from early 2014: "If ever there were a time for a stock sell signal, it's now," and "This chart shows the market is a ticking time bomb." both referencing the low VIX. As the weekly chart of the S&P 500 below shows us though, the VIX can linger at low levels and the market can rally while it is. Maybe a low VIX is the new norm. Still, even going back to 2013 we can see just how unusually overheated the current surge is. People who've bought at short-term tops have been punished, and people who've bought on the dips have been rewarded, all within the context of a longer-term uptrend. I still in my heart of hearts think stocks are due for at least a decent move lower. Then there's this comparison of 2016-to-date versus the market's average year. Not only are stocks beyond what's typical as of the end of July, but we can see August tends to be a weak month. And for the record, when August is bad, it's bad. Although we only see an August loss about 43% of the time, the average August loss when the month is bearish is -4.24%. In other words, you can't afford to be wrong when presuming August will be a bullish month. Of course, if nobody else believes we're due for a dip, then what I think doesn't really matter.