Good Wednesday afternoon, one and all. As usual, we've got some thoughts for you on where the market is likely to be going. First though, there's another piece of business we need to take care of.
If you're reading this, then odds are you're familiar with an investing-oriented website called Seeking Alpha - a site mostly consisting of commentary produced by amateur investors and non-journalists. You may also be aware the Motley Fool established a similar blogging platform a couple of years ago, allowing anyone to post thoughts and observations about a particular stock or group of stocks. While open platforms like these are inherently going to invite some abuse, the editors of both websites did a reasonably good job of making sure all the posts that were syndicated were legitimate stories and not just some guy trying to inflate his stock's price. Oh, occasionally a questionable piece may have made it through, but by and large these media outlets were great places to find information the mainstream media wasn't offering... particularly about small cap stocks.
Well folks, for better or worse, Yahoo Finance has stopped syndicating the Motley Fool's blog posts, and has also stopped syndicating Seeking Alpha's stuff. The reasons for the severed relationships still aren't entirely clear [everyone has their own spin on the issue], but at this point, it doesn't even matter. It's done. Our only regret for you guys is that many of you likely used both websites for some occasional perspective on certain small cap stocks, and you probably used Yahoo Finance as the path to get there.
With these small cap write-ups no longer readily available at the world's most popular finance portal, what's an investor to do? For that matter, what's an amateur small cap journalist supposed to do? Answer: Make the SmallCap Network your hub, not just for getting information about small caps and micro caps, but also as a place to post your stories and thoughts about small cap and micro cap companies.
While we never like to see any business relationships turn sour, the fact of the matter is we've already seen interest in our site perk up. As more and more investors realize what's no longer happening at Yahoo Finance though, we anticipate interest in www.smallcapnetwork.com growing even further. And well it should. We just want you to make sure you make the switch, whether you're just a fan of small caps or you like to publish about them. In fact, if you're a writer - and if we really like your stuff - we may even let you publish to our Google News feed, which sends links to our commentaries to Google Finance's individual stock pages. More than that...
... while this may be irrelevant to those who just use our website for trading ideas and insights on small caps, for publishers, the way our site is structured means it's better to get on board sooner than later.
In simplest terms, anyone who posts stories at our site can be "followed" by any other user. This just means if someone likes your stuff, then your write-ups and trading ideas are the first things they see when they visit the site. I think some of the guys at the site have hundreds of followers already, if not more. You too can build an army of followers, but in order to build your fan base the fastest, we suspect being one of the earlier contributors - when there's less competition - could be crucial.
Whatever the case, with Seeking Alpha being displaced and Motley Fool blogs being completely taken out of the picture, SmallCap Network is positioned to become the next big destination for small cap enthusiasts. We're excited about the prospect, and you should be too.
OK, about this market...
The Floor Holds... So Far
There's not a lot to discuss today, though we can say with some certainty that investors aren't quite sure what to make of everything now. When all was said and done, the market didn't move any measurable amount; the S&P 500 gained a whopping 0.03 points today, closing right in the middle of its intraday range. That's indecision.
The good news is, it looks like the 100-day moving average line (gray) is indeed a floor to be reckoned with. The index traded a little bit below it today, but it didn't take long for the bulls to push back above that mark. The bad news is, the S&P 500 still logged a lower low and lower high, and we're still about to pop a very precarious bubble.
My guess is, we're still looking at a breakdown below the support area around 1914. The bears just needed to regroup before pulling the trigger. The irony is, had the S&P 500 plunged below the support at 1914 today, the odds of a snapback rally would have been quite high. By pausing and letting both sides of the table cool their jets today, the bears got an extra day to amass their army without giving the bulls a chance to start believing "the" bottom had been hit. [Yes, it all seems a little counterintuitive. All I can say is, welcome to the market.]
The curveball is, we could still see a modest bullish effort to push up and off of the 100-day moving average line from here. It's unlikely it would do much in the way of rekindling the bigger-picture uptrend though. It would just be something of a setup for the drop that carries the S&P 500 below 1914, luring a few more people back in right before it happens.
That's the way we see it all going down anyway. The cool part about this whole situation is, we don't have to decide right now. In fact, we actually need tomorrow's action to make a decision.
From the Site...
Speaking of commentary at the website, we got a bunch of great stuff posted today we want to show you.
First up, you may have noticed we added e-commerce name Speed Commerce (SPDC) to our focus list a few weeks ago. Peter Graham took a deeper look at the company today in front of its earnings announcement on Friday. A couple of its peers have already reported, so there's some context about what to expect here.
Remember Hydrocarb Energy (HECC), which we introduced to you on Friday? One of the things we loved about the stock was its strong presence in Africa. Well, John Udovich examined three African oil stocks worth a look today, which is quite timely considering Russian oil has now come into question. By the way, as we expected, HECC has perked up as we expected now that its segment on TV show New to the Street has been aired. Volume's been pretty healthy too. This one looks like it may have some potential to really run, and John's look can shed some light on why.
Finally, Bryan Murphy named hid favorite Chinese tech stock play today. It wasn't Baidu (BIDU) or Qihoo 360 (QIHU) either. If you want to know what it is, just read.