Oct 16, 2009 @ 12:44 PM PDT
When the recession hit, Audiovox was already in the process of cutting its fat, whereas other companies were only just beginning.
I've seen the promoters come out swinging for Ronn Motor Company, Inc. (PINK:RNNM) shares before, and I suspect that's what's going on behind today's 25% gain. That said, the company did have some good news today.
Don't get me wrong though - this isn't about the company's news. I'm interested in going long on RNNM for two simple (combined) reasons... it's oversold, and today's volume spike should get the attention of the market. Other investors should follow suit, seeing the same chart of Ronn Motor Company and decide to pile in. You could make the argument that the outside reversal bar from Ronn Motor Co. shares is also a clue, and perhaps it is. I don't personally think candlestick clues mean quite as much when the float is this small, but it doesn't hurt.
This isn't a long-term call on RNNM; the pop should provide enough fuel for only several days worth of upside, perhaps up to the $0.40-ish area at best.
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We actually issued a bearish call on United Therapeutics Corporation (NASDAQ:UTHR) back on September 23rd. I just wanted to update my thoughts on the chart after the recent failure to pop back above a key resistance line.
The $43.58 mark has proven to be a big deal for United Therapeutics Corporation shares. It was a ceiling in June, support in October, and a ceiling again last week. That last instance is the one I'm most interested in when it comes to UTHR... we really needed that line to hold the stock lower to justify sticking with our short/bearish trade. Just as helpful is the fact that United Therapeutics Corporation is down today despite a very strong 'up' day for the market.
I still contend that UTHR is ultimately going to close the May gap at $33.69, but I'll also warn you I see support at $40.00.
Trading TerreStar Corporation (NASDAQ:TSTR) shares - and I do mean trading rather than investing - has been pretty fruitful over the last several months. Moreover, it's also been fairly predictable. That's why I'm excited about today's setup.
The chart basically tells the tale as well as I could. TerreStar Corporation shares found support around (though not exactly at) prior support levels, and have broken back above a falling resistance line over the last three days. If TSTR can get and stay above the floor at $1.18, I see no reason why the stock can't roll back up to the $2.00/$2.50 area.
The one thing TerreStar Corporation's chart is missing this far is volume; we'll need more buyers to get TSTR over the hump at $1.18. I'll just keep it on the watchlist until then.
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