Low volume bounce

Low volume bounce

March 19, 2007

Select stocks witnessed buy interest today. But overall volume was low. Some stocks like ROCM, TZOO, SYX, JOSB, VIP, PERY, FRPT, OFI, SNDA, PSYS, BWLD, CMG, NCMI, and GES had high volume breakouts. Some of these have more gains ahead. Some of them had recent good earnings and were not dented by the correction.

After a correction stocks which were not affected by it spring back in to action. Some of these stocks are early in their price and earnings appreciation cycle and they will keep going up, or get in to consolidation if down move in overall market continues.

Another set of stocks which will start breaking out in few weeks would be, stocks likely to have good earnings. They will run in anticipation of good earnings. Like post earnings announcement drift PEAD, there is pre earnings drift. To play it you need to track analysts earning estimates. If analyst start taking earnings estimates up, the stock is likely to go up.

It is still too early to expect a sustained tradable counter trend rally.

Market Monitor
Total 4% plus bullish breakouts=112
Total 4% plus bearish breakouts=35
65 day bullish/bearish ratio= 613/386
Stocks up 50% or more in a month=4
Stocks up 25% or more in a month=35
Number of stocks with 100% plus move =289
Number of stocks up 200% or more = 66
4% plus signals for 100plus universe=30
4% plus signals for 200plus universe=13


Select stocks which had 100% plus move in last 260 days from the low and which are up more than 4% on higher volume. Today's minimum volume is above 100000. To understand how to trade this see the post "How to find a stock which makes a 1500% plus move in a year".
Out of the list below many have flat bases or cup with handles.

ACAD,Acadia Pharmaceuticals (Google  Yahoo  Earnings  Chart) 
ACOR,Acorda Therapeutics Inc (Google  Yahoo  Earnings  Chart) 
BVX,Bovie Medical Systems (Google  Yahoo  Earnings  Chart) 
CECE,Ceco Environmental Corp (Google  Yahoo  Earnings  Chart) 
CHL,China Mobile Ltd (Google  Yahoo  Earnings  Chart) 
CYNO,Cynosure Inc (Google  Yahoo  Earnings  Chart) 
CYTR,Cytrx Corporation (Google  Yahoo  Earnings  Chart) 
GES,Guess? Incorporated (Google  Yahoo  Earnings  Chart) 
GIGM,Gigamedia Limited (Google  Yahoo  Earnings  Chart) 
GLBC,Global Crossing Ltd (Google  Yahoo  Earnings  Chart) 
GT,Goodyear Tire&Rubber Co (Google  Yahoo  Earnings  Chart) 
JSDA,Jones Soda Co (Google  Yahoo  Earnings  Chart) 
LFC,China Life Insurance Company (Google  Yahoo  Earnings  Chart) 
LTS,Ladenburg Thalmann Finl (Google  Yahoo  Earnings  Chart) 
NEXC,Nexcen Brands Inc (Google  Yahoo  Earnings  Chart) 
NWK,Network Equipment Tech (Google  Yahoo  Earnings  Chart) 
OFI,Overhill Farms Inc (Google  Yahoo  Earnings  Chart) 
ONT,On2.Com Inc (Google  Yahoo  Earnings  Chart) 
PERY,Perry Ellis Int'l (Google  Yahoo  Earnings  Chart) 
REFR,Research Frontiers Inc (Google  Yahoo  Earnings  Chart) 
ROCM,Rochester Medical Corp (Google  Yahoo  Earnings  Chart) 
SIGA,Siga Pharmaceuticals Inc (Google  Yahoo  Earnings  Chart) 
SIGM,Sigma Designs Inc (Google  Yahoo  Earnings  Chart) 
SILC,Silicom Ltd (Google  Yahoo  Earnings  Chart) 
SYX,Systemax Inc (Google  Yahoo  Earnings  Chart) 
TTWO,Take-Two Intera Software (Google  Yahoo  Earnings  Chart) 
TWW,Terremark Worldwide Inc (Google  Yahoo  Earnings  Chart) 
TZOO,Travelzoo Inc (Google  Yahoo  Earnings  Chart) 
VIP,Vimpel Communication Ads (Google  Yahoo  Earnings  Chart) 
WCG,Wellcare Health Plans Inc (Google  Yahoo  Earnings  Chart)