With the major indices setting up above resistance recently, I expect some
consolidation here before the next bull run and am eying up some solid small
caps that could deliver in the short term. If good news comes out of Europe, you
can bet Ill start to act on some or all of these ideas. Most of these have a
market cap less than $500 million and some are oversold while others are
consolidating after the last move up. Things to remember if youre new to my blog
include I hardly ever swing through earnings, better off going to Vegas and my
goals is to make 10% on a trade a move on. All trades verified through a third
party and linked directly to my brokerage accounts. Dont believe in the power of
small caps, how about the 100% plus alert I called on JVA in less than 2 weeks
time recently. Or the 30% on QPSA last Friday at $2.95 that one day later hit
$3.75! Small caps are where its at for the little guy and I make my living
teaching others how to leverage these short yet predictable opportunities.
Coffee Holding ( NASDAQ:JVA ) was a recent alert of mine from $7 to $14 on a
short squeeze call. (Read more ) Earnings are on Monday January 30, 2012 and I
think coffee stocks are bound to get hot again before then. Right now JVA is
setting up just above the 20 and 200 Moving Averages which is where Im watching
for a swing trade between $10.50 and $14 short term. Accelr8 Technology (
AMEX:AXK ) had a solid move up over the summer and is now settling just above
the 20 and 50 Moving Averages. Price action support can bee seen on the chart
pretty much where the price is today followed by the $2.30 range. With the 200
Moving Average at $3.37 followed by a price shelf at $4.25 there is plenty of
upside potential if AXK turns back up from here off this accumulation phase
which is slowly starting to edge higher. Earnings are on Wednesday December 14,
2011. Caribou Coffee Company ( NASDAQ:CBOU ) has earnings right around the
corner on Tuesday November 8, 2011. Like JVA, Im watching for coffee stocks to
heat up again and if they do I like where CBOU is on the chart today. The 20
Moving Average is at $12.58 and a breakout above $13.50 should signal a move to
the $15 range short term. ZAGG Inc. ( NASDAQ:ZAGG ) is not stranger at
JasonBondPicks. Weve played this one in both directions but I like it long here
if the market heats up as I think it will. Earnings Monday November 14, 2011 so
there is about 3 weeks of runup opportunity here. Its above all 3 major Moving
Averages and has a decent trading range from $13 to $15.64 short term. Majesco
Entertainment ( NASDAQ:COOL ) is still a bit top heavy for me still but I really
like this stock. Early entry off of the $3 range is something Ive considered but
Id really like to be positioned at $2.75 heading into the Zumba 2 launch.
Recently I swung it off the $2.01 range after the last earnings dip illustrating
my ability to find support before upward swings. Earnings arent until Friday
January 16, 2012 leaving plenty of time for traders to get excited about Zumba
2s numbers post launch. Liquidmetal Technologies ( OTCBB:LQMT ) is my lotto pick
before the holidays. Like most small caps they have their fair share of problems
but their deal with Apple and Swatch are just a few examples of future stories
that could launch this small cap into the lime light. Having said that, the
trend is nothing but down for months so its just a watch for me still. Possibly
a trade off $.15 but Ive yet to decide that. This is my illiquid (pardon the
pun) speculation play, make no mistake there is little to no daily volume, not
my typical swing trade idea. Sirius XM Radio ( NASDAQ:SIRI ) has earnings are
Tuesday November 1, 2011 and theyve already upped their guidance but if/when the
beat Wall Street you know itll pop again on all the excitement. I said it was a
steal at $1.40 recently, have made plenty of money trading SIRI and now I plan
to do it again. Now, this is the only stock on my watch above a $500 million
market cap and normally I dont like to go there because thats where the big boys
play and trust me, you cant get an edge on the big boys in my opinion. Having
said that, SIRI is a good opportunity heading into this round of earnings,
especially if the market goes into an uptrend. A clear trade range can be seen
here at $1.80 with upside $2.20 to $2.50 short term. Dont expect SIRI to move
fast though, like I said its market cap is $7.22 billion. To put it in
perspective, my favorite market cap is $100 $200 million. Disclosure: I am long
3,000 QPSA at $2.95
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