News Details – Smallcapnetwork
VRML Breaks Out. What to Do Now.
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February 2, 2024

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PDT

We're already at Memorial Weekend! Is it just me getting older or is time actually speeding up? I suspect it's the former. Anyhow, here we are with the old adage, "sell in May and go away." While the major indexes continue to make a valiant effort to put in at least a short-term bottom, I wouldn't hold too much water to the move into the close today. We're likely going to have most traders unwinding their positions, long or short, doesn't matter as nobody will not want to be caught wrong when the markets open next Tuesday, so whatever happens into the close doesn't really mean anything to me. Advertisement EXPOSED: Mainstream Medicine's Deadliest Conspiracy For the first time, mainstream medicine's deadliest conspiracy has been EXPOSED. Finally, this video is the 'shot heard around the world' the establishment prayed would never come. Powerful interests are hell-bent on minimizing the damage it is doing to corporate medicine's profit machine. Before it's banned, watch the full video here. Advertisement I will point out here the NDX over the last five days has formed a nice triangle wedge, so when the markets open next week, you can be rest assured that wedge is going to be broken one way or another. I suspect it will break to the upside but I would only be willing to bet a nominal amount of money on that. And, even if I'm right, I'd take my profits pretty quickly until this market can prove to us that this week's bottom is one we can rely on for a while. The NDX has a lot of work to do before I'll be convinced of that. While I'm on the subject of triangle wedges, most traders believe when a wedge breaks... that whatever direction it breaks toward, that's the direction the stock is headed. Not true. Although that can be the case at times, it most definitely depends on a lot of other technical scenarios as to whether or not the wedge will continue its directional trend or simply be a head fake reversal. Just thought I'd point that out. If you want some key levels where we believe this market will gravitate to in the weeks ahead, check out yesterday's newsletter here. SCN Featured Stock Updates Over the last week or so, we've pulled a couple few Featured Stocks from our homepage list that have either seen their best days for a while or simply just haven't been performing, i.e., DSCO. Can't win them all, especially in the small cap space. However, Two of our most recent ideas, MDMC and VRML, have provided ya'll with gains of 30% and 34% respectively in the blink of any eye with VRML doing it in a single day. Congrats to those who took advantage of those suggested entries into both of those! Right now, in this market, those are extremely impressive gains. If you want to keep up with our Feature Stock list, simply go to the homepage, they're displayed in the upper right orange box titled, "SmallCap Network Featured Stocks". Our list is a little light now for obvious reasons, but if you've been following along for a while, you'll know that can change on a dime. MDMC has been quietly moving up the chart as the stock has continued to get more and more attention. That's the kind of controlled momentum every fund manager dreams of. VRML, on the other hand yesterday, exploded on absolutely nothing but insane volume. The discoverer and developer of diagnostics tests that help physicians to diagnose, treat, and improve outcomes for patients made a parabolic move to the upside on over 2M shares of trading, which was over triple the average daily volume. However, the move came on no news and no plugs anywhere that we've been able to attribute it to. That can be a sign of very good things to come or simply a false rally which so many small stocks are capable of for various reasons. Let me explain... We've made it pretty clear that the Company has managed to finally put itself in a position for real growth, something that has taken the Company years to get to. If you want to go back and read our most recent commentary on the subject only nine days ago, you can go here. Yesterday's move puts all of you who decided to take a position in VRML right in the sweet spot now. However, let's call a spade a spade here for a minute because there's possibly a little more than meets the eye. I've included a daily chart here showing you the last time VRML made this exact same move. You'll notice on March 6th well before we started covering the stock, it made the exact same parabolic move to the upside only to trade off those levels in the ensuing days and weeks to come. This morning's price action so far is suggesting there's a decent chance the stock is going to do the same thing all over again. If the largest non-affiliate shareholders behind the stock are somehow getting the stock to make this kind of move so they can simply sell on the way back down in an effort to consolidate, we're likely going to end up right back where we were. However, if VRML had real buying interest starting to flow into the stock based on some sort of interest you and I aren't yet aware of yet, then yesterday's move could be a real game changer for VRML investors. Bottom line is if VRML can buck the behavior the stock displayed back in early March and grind higher taking out that $2.79 high yesterday, the rally could be for real. If you didn't get in when we initiated coverage back at $2.08, right now would be a bit of a crap shoot. Let's see if this rally is for real. If the stock experiences some significant follow through, shares of VRML could get very exciting for those who took our suggestion and jumped in at $2.08. YELP so far hasn't done a whole lot but that's to be expected with FB's social fallout in the equity markets. In sentiment, this would make sense but in reality, I don't see the connection. I read an article written by a fool, I mean a Motley Fool, sorry, that suggested both ZYNGA and YELP are tied very closely to FB's success. Although I believe that for ZYNGA, I don't buy that for one New York minute with YELP. I never access YELP through FB, that's just absurd. Whether YELP goes up or down here in the short-term, I think the long-term prospects for the stock remains very promising. ORYN is off a little since our initial coverage on the 16th of May currently trading around $.94 cents a share. The developer and marketer of flexible electroluminescent lamps and drive electronics needs to find some support around current levels and start making a move higher or it may have seen its better days for a while. Just remember, you can make a lot of money in small stocks, you just can't be greedy. Bulls make money, bears make money but pigs get slaughtered. I know, that's a little harsh but it's absolutely the truth. It's also important to note you're not going to win every time in the market, so don't be stubborn when the writing is on the wall. We hope you have a very well deserved long Memorial Weekend. We'll be back at it Tuesday. Until then, enjoy some R & R.