Constellation 3D (CDDD) is definitely a company to keep an eye on, I believe, for their technology as well as their trading activity. None of the small caps that I'm tracking are moving with the same volume as yesterday (it goes without saying, I think, given the performance of the Index this morning compared to yesterday's "sweep 'em off their feet" rally). The volume on Read-Rite was 5.5 million; this morning it's 10% of that or down 500,000. Volume on Constellation 3D is not as striking; it's currently 47,000 compared to yesterday's 144,500.
NASDAQ NEWS: Desperately Seeking Fairy Godmother
By Shelley Souza
Optionetics.com
One of my all-time favorite movies is "Desperately Seeking Susan." The irrepressible Madonna and the waif-like Rosanna Arquette thrown together in an unlikely scenario, which nonetheless is about as enjoyable a piece of escapism as I can think of. So, the Nasdaq . . . escapism or the beginning of a bull rally; or da bears . . . are they still playing with us, offering an enticing little rally that they'll sell into later today? Nonetheless, today's a great day to look at Cinderella stocks (the small caps who rarely get to go to the ball but instead work quietly in the background bringing in surprise returns for those who pay attention).
A couple of companies I suggested friends and fellow traders put on their radar screens earlier this week (and which I have written about recently) are taking incremental steps to the upside; but I like their conservative movements. These companies could be sleepers getting ready to wake up the crowd. Read-Rite (RDRT) continues to trade up, after a small retracement-the usual "buy the rumor, sell the news" pullback. My bet is that this company will be the Bell Microproducts (BELM) of 2001; which is also trading up from its recent low of $12 after giving last year's investor about a 400% return if they bought at $12 in February 2000 and sold in October post-split at $34.
Constellation 3D (CDDD) is definitely a company to keep an eye on, I believe, for their technology as well as their trading activity. None of the small caps that I'm tracking are moving with the same volume as yesterday (it goes without saying, I think, given the performance of the Index this morning compared to yesterday's "sweep 'em off their feet" rally). The volume on Read-Rite was 5.5 million; this morning it's 10% of that or down 500,000. Volume on Constellation 3D is not as striking; it's currently 47,000 compared to yesterday's 144,500.
Watchguard Technologies (WGRD) gained 2 points or approximately 20% yesterday and continues to trade to the upside this morning. While this stock is often tradeable, for longer-term investors, it's a company worth keeping an eye on. One of these days, it will either become a mid-cap company or an attractive acquisition. They're in a niche that will always grow faster than Fortune 100 companies: the small- to midsize business sector, offering security where it is actually most needed. It's not the "big boys" that create security threats on the Internet, it's actually the smaller companies who usually don't understand that the Internet in its inception was never designed to be secure for business purposes.
I quite purposefully stayed away from the news that is already out there today. The Market site at Optionetics.com is delivering it with much more journalistic aplomb than I could do justice to this morning. My attention is always drawn to the small caps when the Nasdaq starts to put in signs of a sustained rally. In the general order of things, the small caps will eventually have their moment in the limelight and I usually like to catch them right before the curtain goes up and they step on stage. By the time that happens, the cost of admission is already overpriced.
Have a great Martin Luther King, Jr. weekend. And, as always, trade well!
Shelley Souza
Senior Writer & Trading Strategist
Optionetics.com ~ Your Options Education Site
ssouza@optionetics.com
For more information on learning how to make money with options, go to the Optionetics.com full site! We empower investors through knowledge.
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