Has the summer slump finally arrived?
With as much certainty as a summer swell, each summer brings a period of lower volume and downtrend in the market. This time, the lull is showing up in bits and pieces even as the Dow sets a new high. Am I bitter? Aaaaaah ... not really.
I have enough faith in Crocs, Sina, Apple and Nintendo to feel comfortable. Baidu? They lead their field, and what a large field it is. Concerned about the lofty PPS? Yes, but it's a good problem. It's the weakness in my small-cap favorites that is a source of some stress.
Dendreon continues to take a beating — to a pulp — that brings Rocky Balboa to mind. You wonder when DNDN will stop taking the punches and fight back, though. DNDN is down 3.4 percent to $7.52 with an hour left in the session.
Hoku Scientific took a breather yesterday, giving back some gains on a relatively paltry 2.6 million shares. Today, with an hour left in the market, HOKU has retreated 3.4 percent to $12.95 on 3.3 million shares. HOKU is now down 11 percent since its mid-day high yesterday.
Even with this low volume, I think HOKU could possibly drop to $11.85, which would be 18 percent down from yesterday's mid-day high. The stock could also drop 23 percent from its high, as it did between June 26 ($12.80 intra-day) and June 29 ($9.84 intra-day).
A 23-percent pullback from yesterday's all-time (mid-day) high of $14.55 would bring HOKU down to $11.23.
Bears are finally smiling again as HOKU proves to be vulnerable to the whims of traders, but the lack of volume today could mean Mama and Papa Bear may be shooed out of the party real soon. The last time volume was this low — 1.8 million shares on July 5 — HOKU was up in five of its next six trading sessions on strong volume.
Disclaimer: Pupule Paul is long in the stocks mentioned in this story.
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