Wednesday, February 23, 2011

A Few Risky Names to Watch Right Now

First of all, THESE ARE VERY RISKY STOCKS AND DO NOT PLAY AROUND WITH THEM UNLESS YOU ARE WILLING TO TAKE THE RISKS THAT GO WITH THEM.  I AM NOT RECOMMENDING ANY SORT OF MOVES WITH THESE STOCKS - JUST BRINGING THEM TO YOUR ATTENTION.

With that out of way, I noticed a few micro-cap oils popped today and I thought back to 2008 when the same exact thing happened when oil was running toward and past $100 and was all over the news (sound familiar??).

I'm kicking myself for not thinking about this earlier and having these on my watchlists, but they are worth keeping on the list now.  These may fall right back down tomorrow, but they also have a chance to be starting major momentum moves due to their low-floats and shorts piling in and then having to cover.  I certainly wouldn't chase here, but watch them and see what they do.   Charts below speak for themselves.

 MXC 2008
MXC's 2008 Move
MXC Today
 PDO 2008
 
PDO's 2008 Move
 PDO Today
Charts from Telechart, Courtesy of Worden Brothers, Inc.

Back then, these moves corresponded with a bear market bounce after the first major move lower of that awful bear market.  Today, we look to be perhaps just starting a major correction, so the chances of these moving the same way are certainly not as good.  Watch them however - you never know.   BDCO and ROYL are two others.

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