Both of these longs are very speculative and trade very few shares a day. Therefore, if you are an experienced active investor you must keep the longs small and use limit orders only. If you are a newbie you must stay away from these as they are both too speculative with the very low average daily volume and stock price under $20. Be careful out there in this choppy market. I will be back later on to complete the longs analysis.
new speculative Featured long position: AIRT
AIRT is putting in a bullish intraday reversal at the recent mid-February support, on strong volume. AIRT was climbing higher in a very wild and erratic way until the gap higher on very strong volume and max green BOP in February. That gap higher started an uptrend that lasted until six days ago. The entire uptrend was full of very strong accumulation that happened on almost every day. Along with the very strong uptrend, BOP went max green and stayed that way until the highs. As the stock pulled back the past six days, volume dried up to below average, leading to this bounce on strong volume. The fundamentals are very strong with some strong growth in EPS and sales the past two quarters and mutual fund ownership has grown from 1 to 5 funds the past four quarters. This is not a good long for newbies due to the very low average daily volume and stock price being under $20. If you do go long make sure you use a limit order only or else you WILL get a poor fill. Cut your loss with a close below the 11.21 level, if the stock does not move higher immediately.
new speculative long position: EPM
EPM is breaking out above the 50 day moving average and closing a penny off the HOD, on very strong volume. This stock started the most recent uptrend in September by taking off on very strong volume. That led to a very long uptrend that saw the stock rally on very heavy accumulation with BOP going green to max green. The stock also found constant support above the 50 DMA showing how strong it can be once it does trend. After topping in January it has pulled back on very low volume but has now woken up again and is moving higher on very heavy accumulation and max green BOP. The move started yesterday when the stock popped higher on HUGE volume with BOP going max green. But today’s move over the 50 day moving average now gives this stock a very pretty chart on the short term that can not be passed up by active investors that love extremely bullish charts. This long, however, is not a good long for newbies due to its low average daily volume and extremely low stock price. The fundamentals suck but the chart is extremely high and should make up for it. Experienced active investors should also make sure this is a very small portion of your account, if you do go long. Cut your first loss with a close below the 50 day moving average and your final loss with a close below the 4.07 level, if the stock does not move higher immediately.
