Author: Michael Wagner
Model: Small-Cap Swing Trader
Disclosure: Long MCZ, CRME
It was a pretty good month of March for my model, up approximately 5%.
There were not a whole lot of winners, but a big win on Mad Catz Interactive (AMEX: MCZ) more than made up for lots of little losses in, for example, Dyax Corp. (NASDAQ: DYAX) and ZBB Energy (AMEX: ZBB).
I sold half of my position in MCZ on 4/4/11 just to lock in some gains. I will continue to hold my core position and trade big pullbacks, as I have a feeling this one will act similar to Glu Mobile (Nasdaq: GLUU) and Majesco (Nasdaq: COOL). I am thinking there is a possibility of this one eventually trading quite a bit above $3.00.
I entered a new trade on 4/6/11 in Cardiome Pharma Corp. (Nasdaq: CRME). I have played this stock a few times in the past, usually on the short side, but this one is so beaten down now I don’t think it has a lot of downside left. The MACD, RSI, and Slow Stochastics are all showing this stock starting to come alive. It has also broken through its downtrend line, and as of 4/1/11 it is well below the 50 day moving average. Back in November 2010 it acted similarly, and I think it might be time for another run up to the 50 day.
Speculative biotechs have been doing well lately, so I am thinking CRME might follow suit. I will as always cut my losses very quickly if and when my theory is proven wrong.
