Blue Horseshoe Stocks: Potential Bottom-Play, HMCP Update & More

GAIN Capital Holdings, Inc. GCAP

GCAP began to get hammered on the heels of yesterday’s announcement by the Swiss National Bank that it would move interest rates caused some volatility in the Swiss franc.

The stock is still getting crushed in the premarket today despite the fact that the move by the Swiss does not materially affect the company, as stated in a commentary released by BCAP yesterday afternoon. >>> READ PR

Currently it has been beaten down to the 6.50-area; its lowest levels since October, so what we’re going to want to do is monitor this play for an eventual bottom-bounce. This is exactly the type of knee-jerk pullback we like to catch, as the recovery can often be extremely profitable for quick-witted traders.


Heritage Media Corp. HMCP

We first brought HMCP to our readers’ attention on New Year’s Eve, and discussed it most recently last Thursday. With such a low float, HMCP is susceptible to rapid movement on relatively little buying/selling pressure, and in the intervening time between those two reports, we witnessed a series of heavy swings in the stock cumulatively totaling 200%

We pointed out that the patterns were making a bullish flag formation on the chart, and it did turn out to be a prelude to further gains. On Monday we observed a low of .003, and yesterday the stock registered a new high for us at .0077, which adds another 156% swing to the already impressive moves we had witnessed previously.

Indicators are still looking ripe as illustrated on the following snapshot, so HMCP will be something that we keep a close eye on into next week.


Extended Watchlist:
RVP, SDRL, EOPN, IAG, PBR, BBEP