Stock Scanner Results for August 7, 2009 AWBC and VOCL

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Only a small handful of stocks came up on my new scan that I discovered.  I got 6 results from over 4500 NYSE and Nasdaq stocks. Unbelievable.  I continue to be extremely impressed with this scan because it is returning so few candidates out of so many thousands of stocks.  And some of the candidates it returns tend to be at optimal time and price locations.  Now part of this is the result of the positive overall structure of the broad market, or is it?  I will not really know until I start to see the results of this scan in a more choppy sideways market or bear market.

The stock scanner also tends to reveal a lot of spotty type stocks.  With more spotty volume and price.  That is because I have it open to give me results on as many stocks as possible.  I am not limiting it to stocks that just trade above a million shares a day for example.  I do this because I do not want to limit opportunities of what it may find.

Anyway, AWBC and VOCL came up in the scan.  Both of them have somewhat spotty charts and VOCL has quite a small trading float (about 6 million shares) so it’s moves can be fast and sharp in both directions.  (click on each chart to see full size)

AWBC looks like it might have a double bottom formation, but it still has a good amount of work to do, and still suffers from a persistent downtrend during which time the rest of the market was rallying. It is trying to work its way higher off of this most recent bottom.  The volume was so so on the last two days on AWBC.  I might keep an eye on it next week to see if it can get a run going.  In order for me to stay positive on it, it MUST MUST stay and hold above .50 cents next week.

VOCL has the better looking chart of the two of them because VOCL has already shown us that it is in an uptrend since the beginning of this year and that price wants to move higher and trend upwards.  The volume during the last two days on VOCL was really pathetic but still higher than near term average volume and hinting that it may want to break out of this pattern soon.  Friday’s price action slightly pierced the top of the triangle pattern, but again on pathetic volume.

In order for me to stay bullish on VOCL, it MUST MUST hold at 1.10 or higher.  If a breakout type move is to commence next week, then volume is going to have to pick up big time and soon.  The problem with these tiny float stocks is that there is literally almost zero margin for error.  You have to watch them like a hawk and be completely glued to the screen on the intraday action to see exactly what volume is doing and price at the same time.

I would not be surprised at all to see VOCL break back down inside the triangle pattern next week and head towards .90 cents again which is at the bottom side of that triangle.  I say that because today’s volume was about half what it was yesterday.  That would actually be a much better risk reward type setup.

So these two are probably worth watching, but maybe just watching.  I might give them both another mention next week.

Posted in Market Timing, Stock Scanner

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