The major indexes gapped up on the open this morning for no apparent reason other than an attempt to head fake traders into getting long the market or cover up their short positions. The strength didn't last long at all, as the major indexes moved lower and even took out yesterday's low to the downside. Again, on a very short-term basis, this market absolutely loves to do anything and everything. This is why we reiterated yesterday that a contrarian approach on a short-term basis is the most playable strategy. This morning was a perfect example. The NASDAQ Composite gapped up roughly 16 points offering investors an opportunity to buy index options and ETF's at higher prices than yesterday's close. Once it had its fill, the indexes reversed course and moved lower. The more prudent strategy would have been to pick up some puts or short the index ETF's on this morning's opening strength and sit tight using your open price as your stop price once the market started moving lower. For those of you who either don't have the time or interest in playing the markets on a very short-term basis, you should be looking for major resistance or support levels, which could potentially pose a bit of a longer and highly profitable open trade. For example, between roughly 2800 and 2815 on the NASDAQ Composite has provided some fairly decent support for the NASDAQ. Should the NASDAQ move lower to that level, you could consider opening a trade to the long side, which could take days and even weeks to play out. In this case you'd probably be better off picking up longer-term options at least a few months out and let it work for you. Incorporating a mental stop in the event you're wrong would likely protect you against a significant loss. That's simply an example for now. We're not suggesting just yet that this is where the Composite is headed or that it will stabilize there if it does because when we decide where something is going and what may happen when it gets there, we're going to let you know. Additionally, there's been a little confusion among our readers regarding the symbol for the NASDAQ Composite. Our trading software has it as $COMPQ, however, Yahoo! And many other data vendors out there list it as ^IXIC. For all intent and purposes, we'll use ^IXIC from now on. CALL Jumps Even More on Revised Q2 Estimates We've initiated an open trade into shares of CALL on three different occasions dating back to late last year. All three have proven exceptionally profitable for all SCN Members who jumped in. Our most recent entry of $14.82 back on June 7th has proven to be another huge winning idea for SCN Members with the stock yielding as much as a 52% gain from this morning's high of roughly $22.63, and in hindsight has also provided what may prove out to be an exceptional long-term investing idea. Although shares of CALL technically looked pretty good back on June 7th, which was part of the context for the trade, the more compelling aspect of the stock at the time was the fundamental value it represented to investors between $13 and $15 per share. If you're interested in going back and reading our argument, simply click on the link above and that will take you straight to that newsletter edition. We mentioned a few weeks ago the stock had ran into a logical resistance level around $20 per share. Sure enough, CALL took a break from its consistent move upwards and traded sideways for the last few weeks. This morning, the Company came out and communicated their Q2, 2012 estimates. In early June, the Company announced that the first two months of the second quarter had already generated net income that exceeded analyst estimates for all of Q2. The Company also provided guidance that Q2 revenue should exceed $36 million while Q2 Earnings Per Share (EPS) might surpass $0.43 per share. The Company is now estimating that Q2 revenue will be $37.5 - $38.5 million and Q2 EPS will be between $0.48 - $0.52 per share. This represents 30%+ revenue growth and more than a tripling of EPS compared to the same period in 2011. Operating Income also increased significantly compared to Q1 2012. Other Income is expected to be +/- $0.02 per share of the $0.48 - $0.52. The maker of magicJack also updated shareholders on their share repurchase program, as well as revised 2012 GAAP estimates. You can read the press release in its entirety here: http://finance.yahoo.com/news/magicjack-revenue-eps-estimates-37-105000249.html. It's great news for SCN Members and shareholders who simply thought the June low offered shares of CALL on the cheap. The new leg up is significant for the stock since it broke through that $20 resistance level on huge volume today. I've included a daily chart of CALL for your review here. If the stock can break back above today's high, that would prove extremely bullish for the longer-term picture of CALL. However, this morning's high was a complete 5/8 retracement of its long leg down that started back in mid-march and continued until its June low, so again we're at another logical resistance level. If you got in on our suggested entry at $14.82, it doesn't appear you have much to worry about but again, a 50% gain in only a month during a time period that literally beat up virtually every other stock is an absolute homerun, so remember, bulls make money, bears make money but pigs get slaughtered. Congrats on another big win. We're keeping our eyes and ears peeled for more of the same. Before We Let You Go, Did You Know? If you didn't already know, we have dedicated a large portion of our site to what we call "Stock HQ." Simply go to the homepage, look for the Stock HQ search tool and enter a Company name or Symbol. There you will find any and all editorial commentary on the stock in question published by SCN Members and Contributors. You even have the opportunity to publish your own thoughts, comments and opinions in an effort to share and help others learn more about what you think of a particular idea. If you'd like to see everything we've published on CALL since day one, go here: http://www.smallcapnetwork.com/VocalTec-Communications-Ltd/s/quote/p/s/CALL/. Have an excellent day, see you tomorrow.