Stocks slipped into the red today with little resistance from the bulls despite the strong open. It's not a tide traders should face without the best of the best opportunities. On that note, YRC Worldwide Inc. (NASDAQ:YRCW), Qiao Xing Mobile Communication Co., Ltd. (NYSE:QXM), and Avro Energy Inc. (OTC:AVOE) may well be those stocks.... two of the three charts look more bullish than bearish.

I actually mentioned Avro Energy Inc. (OTC:AVOE) was a bullish possibility on the 22nd, when it was trading at $0.70. A few hours later in the same session, the stock was trading at $1.27. Great. Five days later, Avro Energy hit a low of $0.47. Not great. Despite the volatility though, I think AVOE has worked its way back into my good graces.

I discussed this briefly with my chat about Juniper Group (JUNP), though I could have just as easily posted the theory regarding Avro Energy shares. With sub-$1.00 stocks, hype can swell and shrink in an instant. That's fine, but the char ebbs and flows along with the ebb and flow. I think that's what happened to AVOE a few days ago. And, the pullback was the price that had to be paid.

Now that all the kamikaze, nervous-Nellies, pumpers, and dumpers have takes care of business, everyone else can start working with AVOE - the volatility should be mostly in the past. And, with the Avro Energy shares moving higher on higher volume again, I think we can reasonably say the net tide is (still) a well-paced bearish one.

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I caught a little bit of flack (though not too much) when I posted a negative outlook for YRC Worldwide Inc. (NASDAQ:YRCW) a few days ago. Needless to say, today's 60% dip makes my glad I stood by my original forecast.

Now I'm going to change my tune a little. Though I can't say YRC Worldwide are an outright buy at today's low price, I strongly encourage to take profits if you shorted (or bought puts on) YRCW. Why? The support line around $1.50 I plotted a few days ago has come into play. It touches lows from last November, March, July, and now this month.

That said, though not necessarily a bull on YRC Worldwide, I'd have a hard time seeing it go anywhere but at least a little higher from here... at least in the short run. It may be good for a scalp trade.


And finally, Qiao Xing Mobile Communication Co., Ltd. (NYSE:QXM) has been all the rage today. I, however, would caution you against jumping onto a hot move at this stage of the game. The pullback from the high of $4.19 to $3.52 is one of the reasons why.

As I mentioned of Avro Energy, these surges in volume and price are tough to follow-through on. The do serve a purpose for stocks like Qiao Xing Mobile Communication though.... they rock them out of ruts and get the market's attention. From here I'd simply wait for QXM to find a better (i.e. more proven) footing before stepping in.

Make no mistake though - I am bullish on Qiao Xing Mobile Communication. I've plotted a weekly chart below to fully illustrate not one, but two bowl-shaped patterns we've seen form since late last year. Those nice, slow reversals bode well for QXM in the long run, particularly when we se this much volume flowing in.

A move above resistance around $4.30 could be a huge upside catalyst.

 
If you'd like to know of any changes in our opinion of YRCW, AVOE, or QXM (or if we officially recommend them as trades), be sure to sign up for our free newsletter today. It's delivered weekly.