Today’s Market Movers: EK, HL, LGF and More

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Nov 2nd, 2011 | By | Category: Featured, Investing Strategies, Penny stocks

It looks like stocks are attempting to stage a tepid attempt at rebounding from Monday and Tuesday’s sell off this morning — but investors beware, nothing has really changed at this point. Europe remains a major problem for U.S. investors, and until that’s actually resolved, investors should expect volatility to be a major concern in stocks.

This is a news-heavy week, with employment numbers and the result of the Fed’s latest FOMC meeting hitting Wall Street today alone. With so many factors pushing stocks around, it’s crucial to be tactical about stocks right now.

To that end, let’s take a look at some of the small-cap stocks in play right now:

Eastman Kodak

Eastman Kodak (NYSE:EK): This stock has been under fire in the last few weeks, as bankruptcy rumors swirl with an already anxious investor base. Forget the (still uncertain) fundamentals for a second — there’s a trade shaping up in this stock for more advanced readers…

A descending triangle in shares makes EK a worthwhile short candidate, but only if shares can move below $1.10. That’s the nearest support level of significance right now. If that breakdown happens, 75 cents is a high probability price target for the near-term.

Hecla Mining Co.

Hecla Mining (NYSE:HL): Hecla is another small-cap name worth watching this week. Junior miners have been under pressure for much of the last quarter, and Hecla’s chart gives a good example of what the industry is dealing with. Watch for a break above the upper trendline in Hecla. When that move happens, it could be marking a change in trend for this stock (and other junior miners as well).

Barring a technical shift in these names, we wouldn’t be buyers of mining stocks right now…

Lion's Gate Entertainment Corp.

Lions Gate Entertainment Corp. (NYSE:LGF): Lions Gate continues to ignore the market pullback, posting new 52-week highs this morning. Today’s action builds on the accelerating uptrend that has been in place since mid-October. LGF could be a solid bet in the near future, but beware — this stock looks overbought today. Watch for a pullback or sideways consolidation before you make your move…

Penny Promotions

Raystream Inc. (OTC:RAYS): RAYS is one of the strongest promotions we’ve seen in months:

Raystream Inc.

Aside from a couple of controlled dips, RAYS has drawn a stair-step chart — perfect for attracting unsuspecting new buyers. This heavily-promoted stock recorded another day of record volume Tuesday, leading me to believe that a shakeout could be coming soon. If you bought into this promotion, it would be wise to cash in your paper gains now.

Legend Oil & Gas (OTC:LOGL): A paid mailer making the rounds right now claims that LOGL could break $10 by the end of the year. At $2.60 per share and going nowhere, we would be shocked if the stock topped $3. Promotions for LOGL have been floating around since earlier this year, but the stock price appears to be too erratic to attract any buyers.


Greg Guenthner and Jonas Elmerraji
for The Penny Sleuth

Author Image for Greg Guenthner

Greg Guenthner

Greg Guenthner, CMT, is the co-editor of STORM Signals and Penny Stock Fortunes. He is also the editor of Agora Financial’s Trend Playbook, a free resource for trend followers and technical traders. For close to a decade, Greg has led Agora Financial’s small-cap division, where he founded one of one of the only independent OTC research advisories in the industry. Greg specializes is classical trading techniques and combines timing strategies with his fundamental analysis of small-cap stocks.

He is a member of the Market Technicians Association and hold the Chartered Market Technician designation. 

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