Blue Horseshoe Stock Report – 08/18/11

PMI Group, Inc. (The) NYSE:PMI

  PMI dipped as low as .375 on  Wednesday, although there was a fair bit of after-hours trading, to the tune of roughly 50K shares, and the stock found its way to .42, which is where we expect trades to kick off this morning.

As you can see from the chart below, there are a few bright spots to outline: The RSI is exhibiting signs of recovery from a period of being heavily oversold, the MACD indicator is beginning to pinch, and look as if a cross is in order. Not to mention the fact that we feel the large gap created by the sudden drop in early August, could be filled in easily with a course correction. For example, when a stock gaps UP, there is usually a subsequent pullback to fill the gap, and we are going to be looking out for the opposite effect here.

A bounce off of .375 to .42 is 12%, however we are expecting much more substantial gains moving forward. Stay tuned for more updates.

Exit Only, Inc.

EXTO has been very good to us, and is trading in a nice tight channel, setting the stage for its next leg up. The stock ran into a little resistance in the low .007’s and the next key resistance following that will be at .008. Support seems to be strengthening significantly in the low .006’s.

With gold near $1800/oz. we are excited for EXTO, and eagerly awaiting production updates from newly acquired sub, Bayport. The last PR cam just over a month ago, so feel that we are due for another at any time now.