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Thursday's Market - An Omen, Or A Blip?
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February 2, 2024

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PDT

Dow Jones 14015.12 -63.57 6:15 am PDT, October 12, 2007 NASDAQ 2772.20 +0.00 For info, visit access.smallcapnetwork.com S & P 500 1554.41 +0.00 Change your subscription status here Russell 2000 834.98 +0.00 VOLUME 07 : ISSUE 96 Saturday Is A 'Go'  In This Edition...  1) Saturday is a 'Go'  2) StockHouse's Exclusive Interview  3) Thursday - An Omen, Or Blip? We now know for sure we'll have a new trading idea for you tomorrow morning. I can't tell you much about it, but I can say you'll definitely want to check your inbox Saturday. In the meantime, there are a few factoids I can give you to whet your appetite. This company... 1) Has a solution to a multi-billion dollar problem  2) Has technology that's basically impossible to copy  3) Is on the verge of what I think will be explosive sales growth I hope you're half as excited as we are about it. I expect this company to become one of the industry's yardsticks. In the meantime, big news today from StockGroup, and then some thoughts about yesterday's big selloff. Is it an omen of things to come, or a blip in the overall uptrend? Keep reading and I'll tell you which one I think it was, and why.    Exclusive Interview at StockHouse.com  You know, there's an outright plethora of mainstream market news out there. All well and good, but the major media sources tend to all paint the same rosy pictures. As the editor of a newsletter I'd describe as 'intentionally alternative', I admire news sources and sites that can give you insights you're not going to get anywhere else. That's why I'm applauding StockGroup Information Systems (OTCBB: SWEB). Their new stockhouse.com site posted an exclusive interview with Thom Calandra today.  Who's Thom Calandra? The name rang a bell with me too, but I'd forgotten why until I read the interview for myself. Calandra is the guy who started MarketWatch.com (before 'CBS' got added to the front of the moniker) back in 1996. He was also the editor of a newsletter called the Calandra Report.  He served as president of the company as well a newsletter editor until 2004, when the SEC ruled he had not properly disclosed his personal trading activities to the newsletter's readers. The case was settled in 2005, but we've not heard much from him since then.  As it turns out, he was using the time to write a novel.  Putting his history aside - for better or worse - I agree with the editors of stockhouse.com that this is a story worth telling. The guy knows a lot, and has some interesting takes on how things really work in the market. The interview is far more interesting than the drivel I find on most news sites, where an unqualified reporter tells me 'stocks are up today because ...'  To read the interview for yourself, just click here.    A Bearish Omen, or Just a Blip?  Some day yesterday, huh? It actually wasn't the biggest single-day loss we've seen recently, at least on a closing basis. However, I think it was the biggest intra-day reversal we've seen in a very long time. By that I just mean the distance between the high and the low was alarmingly wide.  The end result of the day's action created what is known as a bearish outside reversal day. An outside reversal is where that day's open is above the previous day's high, and the day's close is under the previous day's low. It's also called a bearish engulfing day, as the second day's open/close range 'engulfs' the prior day's entire range. The engulfment wasn't perfect, but pretty darn close.  So what? Well, it may end up being a non-issue. However, these outside-day candlesticks are frequently a sign of a reversal. (So are inside-days, but that not the issue at hand right now.)  We really won't be able to say until next week whether Thursday is a setup for more trouble ahead. Sometimes these big swings lead straight into a new trend. Most of the time though, it takes two to four days for it to really sink in. During those few days, it can seem like all is well.  Take Friday, July 20th for instance. The S&P 500 lost 19 points that day (-1.2%). On Monday, July 23rd, the S&P 500 regained 7 points, easing investor's minds. The next day, the S&P 500 fell 30 points, and was on its way even lower.  I'm not saying we're for-sure going to repeat that kind of move. I will point out, though, that the run from August's low to October's high was bigger than the run from March's low to July's high. Moreover, the August-October move took just a little more than half the time the March-July move did. So, we're well overbought, and more than ripe for a correction.  One thing I want to stress...this is not a reason to panic. Stocks ebb and flow - that's just the way it is. I actually welcome a little bit of a pullback, if only to relieve the pressure. And, I don't expect any dip to be to traumatic. A revisit to the 200 day moving average at 1473 (or even a move slightly below there) might be in store, yet it wouldn't be anything unusual. That would be roughly only a 5% corrective move.  If anything, I'd be using such a dip as a buying opportunity. Just something to think about...if the outside day actually means anything.      We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Email the Editor If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402 San Diego, CA 92130 New 'Trader's Corner' Stock Picks on the Home Page Just in case you don't browse the website on a regular basis, we posted a new Trader's Corner article earlier this week. It comes complete with two new technology stock ideas, and updates on our older trading ideas. To see it, just click here.  Remember, the articles on the homepage are exclusive - you won't find them anywhere else...not even in the e-mail version of our own newsletters. Be sure to check the site every now and then to find what's new there.    Titan Global Pulls Back, Stock's Chart Preps For Breakout? I've been patiently waiting for Titan Global (TTGL) to break past $2.20. We saw a couple of attempts a few weeks ago, but it just wasn't getting any traction. Then when I saw the stock fall all the way to $1.70 on Wednesday, I just figured it wasn't going to happen. Then when I looked at the same chart a few hours later, I started to think maybe it's exactly what the doctor ordered. Why? It was a full 38.2% retracement. That may have been enough of a dip to wash anybody out, and let all the second-chancers in. With that mini-capitulation out of the way, I feel TTGL now has a better shot at getting somewhere. Just a thought.  Click here to actually see a chart.  Subscribe Information is power and timely information is profitable. Become informed and profit from Small Cap Network Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. Add your email address below and make sure to check your email inbox and confirm your opt-in request to start receiving the Small Cap Network Email Newsletter on a regular basis. To ensure newsletter delivery, you can add any additional email addresses you may have to the Small Cap Network Member List. Receiving the Small Cap Network Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! For web based email addresses, the Small Cap Network recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery. 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