Well Apple didn't quite help the cause for a continued pullback on the major indices now did they? Good for them - not so good for us. Since we took out a short position in the Q's a few days ago, we had to close it out this morning because like we said, if the market took out yesterday's high, we'd be out. The NDX gapped up slightly this morning above yesterday's high, sold off in the first hour and we got out with no blood. Although the trend is usually your friend, we're not chasing this to the upside.
As for Apple (AAPL), it just goes to show you if you put your money to work in the right ideas, there's plenty of money to be made in this market. We've been saying all along that tech is the longer term strength in this market. While so many other sectors like energy, commodities, retail etc... have garnered most of the attention for years, it appears tech is again on the rise. Will we see another tech bubble in the near future? I doubt it but it's definitely the place to be for the time being.
So what did you all think of last night's State of the Union? Personally, I could have puked at least a few times for a number of reasons. What's likely going to bother me most during this presidential campaign is both parties are going to do everything they can to separate the values and ideals amongst the masses in this country to an extreme, when in fact we need to be bonding and coming together. Too many self-serving interests out there right now in a time when the American people should be on the same page for a common goal. Just my two cents... you don't have to agree but that's the way I see it.
One Plus One Equals Three
If you're serious about investing and trading small caps, I suggest you make the SCN site a daily part of your routine. We've had some very interesting articles of late published in the Community along with some very interesting trading ideas from a few of our Members. In case you missed it, here's some of the best of the best...
James E. Brumley provided his two cents (actually make it three) on the recent breakout of Inovio (INO). The stock popped hard on decent volume late last week and has since pulled back for a decent entry if you want to play this small biotech on the promise of their DNA Vaccine. Inovio is developing several advanced vaccines to fight illnesses including leukemia and hepatitis C.
Technically, the chart looks pretty good and James E. Brumley seems to think this stock may have some serious legs along with the some good fundamental prospects for their road to FDA approval. Get the whole story here.
Obama appears to be riding whatever he can to make himself look good and our country's plentiful supply of natural gas is an area he addressed last night. Right or wrong, situations like this often make for identifying stocks that will benefit thus providing you with some healthy returns. John Udovich provided a nice little report on which stocks may benefit from Obama's natural gas rants. EXCO Resources (NYSE: XCO), Goodrich Petroleum Corporation (NYSE: GDP) and Energen Corporation (NYSE: EGN) all made Udovich's list and what makes these ideas even more compelling is their charts have some nice looking momentum. Read John's article in its entirety here.
Insider buying can often be a real easy way to spot a stock on the verge of running up the charts. What makes this concept even more appealing is insiders often buy on the cheap thus giving you the opportunity to do the same. It's a simple exercise because many insiders will sell for many different reasons many of which usually don't mean the Company isn't doing well. However, when insiders start flocking toward the purchase of their own Company's stock, it can often mean good things are on the horizon.
Brian Prescott dug into some filings and came away with three stocks he has identified with some nice insider buying of late. Get all of the details here, you may be surprise what you read.
Picks on Target
Early this week, we had a few savvy SCN Members provide us with a couple of trading ideas via email that in my opinion definitely warrant the coverage. First, Apricus Biosciences, Inc. (APRI) made the list as this Company, formerly NexMed, Inc., is a pharmaceutical research and development company focused on the design and development of products and technologies in multiple therapeutic areas, including oncology, sexual dysfunction, autoimmune diseases and pain/inflammation. Its drug delivery technology is called NexACT.
Our SCN Member, who will remain anonymous, believes once this Company gets FDA approval in the U.S. for its ED drug, that the stock is going to take off. Well, after review of APRI's chart, this could very well be the case as the stock's major moving averages are starting to converge. What this means is usually a big break is on its way. Also, if you don't see what I see in the chart it's probably because in addition to simple moving averages, I also use displaced moving averages which can be explained here. Good to know for those who study charts.
I saved the best for last... again, this one came in via email so in the best interest of privacy, this individual will also remain anonymous but for the purposes of providing you with his idea, we'll call him Al. Al sent us an email Monday suggesting we have a hard look at Entremed, Inc. (ENMD). The Company is a clinical-stage pharmaceutical company focused on developing focused on developing ENMD-2076, an Aurora A and angiogenic kinase inhibitor for the treatment of cancer. ENMD-2076 is in Phase I studies in advanced cancers, multiple myeloma and leukemia. ENMD-2076 has received orphan drug designation from the United States Food and Drug Administration (FDA) for the treatment of ovarian cancer, multiple myeloma and acute myeloid leukemia (AML).
Al gave us the idea when the stock closed at $1.57 the other day. The stock this morning popped to $2.31 as I type... that's a serious move that warrants some serious attention. Do we jump in now? Hang on tiger. This stock going all the way back to 2000 has burned investors many times over. The stock split adjusted was once as high as $1,100 per share. You read that right.... $1,100 per share. The stock went through a 1 for 11 reverse split and continued downward to current levels.
So, with that being said, let's be savvy about this. The stock is up against the 200 DMA right now so a pullback would likely be in order. If we can get the pullback, let's make our entry then. Keep a close eye here and so we'll we.
As you can see, our Community continues to grow with excellent ideas for even the biggest small cap skeptics. There are a lot of small stocks out there you have never heard anything about. I strongly suggest you make SCN part of your routine because there's no better place to experience the beauty of big returns in a short time-frame like the world of small stocks.
Have a great hump day and do something nice for someone today...