January 30, 2013
Uncategorized
By Geoff Bysshe
The big volume reactions to earnings on Tues, 1/29, were basically bearish. 17 of the top 25 most unusual volume stocks closed down on the day. YHOO opened 2.8% higher but collapsed and closed 2.8% lower. This suggests at least a temporary top in its recent run sparked by the changes in its CEO in late 2012.
The hidden gem in yesterday’s action could be MSPD. This small cap semiconductor related company beat on both earnings and revenues for the quarter and the market responded with a very powerful up day. The big up day is the 3rd such day in the last 6 months with each coming at higher prices. This latest one also breaks a weekly trend line going back to March of 2011.
MSPD’s earnings history is not stellar. The price and fundamentals are in the process of trying to recover from a long tough period, so there may be some digestion needed before any further move, but based on the volume patterns this is one to keep a close eye on.
