Play 'Name That Chart' & Win Free Stuff
Wow. That's all I can say. Yesterday's market movement was nothing short of spectacular. The Russell 2000 small-cap index gapped down 1% to open the day at 624.81. The index then fell to 620.61, before rallying at 12:00pm and closed the day higher by two points at $630.46. That was a nice reversal, and the positive momentum set up a nice pop for many stocks in the Small Cap Investor PRO portfolio this morning.
Last week I wrote, "I'm targeting two key price levels: an upward move through 620 would likely lead to a retest of 660, while a break of 580 should tell investors to look out below. Should the index move thorough 620, then 660, I'm looking for a big move higher to 725. Conversely, a drop to 580, then 550, increases the possibility of a bigger drop to 525."
The fact that the Russell broke through 620 last Tuesday then rallied off the 620 resistance level yesterday, increases the chances that the index is setting up a new trading range with 620 as support. This type of reversal is a bullish sign, and the fact that small-caps led the rise has me whistling in the wind this morning.
And speaking of wind, the storm that blew through the northeast over the last couple of days also demonstrated an intense reversal. On Wednesday morning I woke up to 14 inches of the heaviest snow I've seen in years. By Thursday morning it was pouring rain, and the snow was vanishing before my eyes. Then last night, the wind picked up to over 50 mph and shook the house on its foundation. This morning? Back to where we began, just a few inches of snow and bear ground showing through. The difference in the reversals is that small-caps rallied, while my hopes of a powder-infused white weekend in Vermont fizzled. I guess we can't win them all!
***Today I want to have a little fun and go back to the history books. I also want to give away a free copy of my book and a free Small Cap Investor tee-shirt to a couple of astute readers. So we're going to play a little game called 'Name That Chart'. I've included a chart of a small-cap stock that I recommended to readers a few years ago. Yesterday this stock rallied 18% on a great earnings release, and it is setting itself up to make a fresh all-time high.
So here's the deal. I've included a chart of this stock below. I'm going to give you a couple of hints about the company, but no specifics other then stock price performance. I want you to write in with your submission for the name of the company. If you get it right, your name will go into a hat and my staff and I will randomly draw two names. The two winners will get their choice of receiving an autographed copy of my book, The Small Cap Investor: Secrets to Winning Big with Small-Cap Stocks, or a free Small Cap Investor tee-shirt; whichever they choose.
So here are the rules: Submissions need to be sent in no later than 12:00 midnight Sunday, February 28. Send ONE stock via e-mail with the subject heading, "Name That Chart", to editorial@smallcapinvestor.com. Be sure to include your name in your email and weather you want a copy of my free book or a free tee-shirt in the event that you win.
I'll announce the two winners by Tuesday. We'll also take a closer look at this particular company and discuss why it was such a strong performer. And we'll see if it has more gains to come. Sound good? Ok, then without further ado, here are a few tips.
I first recommended this stock on August 11, 2004 when it was trading at $1.13.
I sold it on September 5, 2008 when it was trading at $26.19 for a 2,218% gain.
The stock currently trades at $24.60
And here's the chart going back to 2004.
Ok, that's it. I look forward to your responses and to sending out a free copy of my book or a free Small Cap Investor tee-shirt. In the mean time, I'm working to find another big winner like this for subscribers to my Small Cap Investor PRO service. I have several outstanding companies in the portfolio today that could achieve similar gains in the coming years – if you haven't already joined, I encourage you to try my Small Cap Investor PRO service today - just click here now.
