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BEE reversed nicely today with decent volume. Long on break above 50 day moving average @1.92. Another good entry would be the break of 2.00

CT had a huge 24% spike. This was actually a good long on break of 2.00. However I was hesitant to go long. Watching for morning action. Long on green, with stop loss below 2.00. Looks very similar to BEE’s chart

NCS has its second green day with good volume. I liked that it closed above 2.00. Will be good entry point on green with stop loss below 2.00

SNV seems to be reversing. Will watch for green, however since its a financial stock with poor record, I hate buying into it.

YRCW had some resistance @4.00. With that taken out, this is a good long trade on green action with stop loss below 4.00.

RADCOM Ltd. develops, manufactures, markets and supports network test and service monitoring solutions for communications service providers and equipment vendors. The Company specializes in cellular, as well as voice, data and video over Internet protocol (IP) networks. Its solutions are used in the development and installation of network equipment and in the maintenance of operational networks. Its products facilitate fault management, network service performance monitoring and analysis, troubleshooting and pre-mediation (the ability to collect network information for a third-party application). The Company’s solutions include Network Monitoring and Performers.

RDCM turned out to be very good short. Notice how the stock was not really doing anything for months. Following news caused the spike.

The share has risen over 400% from its low point in June. Part of the jump in price and trading volume may be attributable to an investment in the company by an institutional investor, although as of now Radcom has not notified the US Securities and Exchange Commission (SEC) of any such transaction.

So the news was nothing but unconfirmed rumor. Once the hype died down,  and the volume faded, RDCM made for a good short.  I was short @2.55 since Friday 23rd Oct and covered today at @2.25 for a nice 10% gain.

Yet another example of how parabolic stocks trade pretty much the same way. These stocks run up huge on news, helped by momentum traders. Eventually when the reality sinks in,  the stock quickly drops back.

Ocean Power Technology (OPTT) was up on following news.

Lockheed Martin Corporation and Ocean Power Technologies, Inc. (OPTT) announced that they have signed a commercial engineering services agreement to develop OPT’s wave energy systems for use in future utility-scale power generation projects. Under the agreement, Lockheed Martin will provide its expertise in systems integration, lean manufacturing, and test and optimization analysis to enhance OPT’s innovative PowerBuoy wave power generation technology to utility-scale. This critical step will allow the two companies to pursue future utility-scale power generation projects in North America. The companies agreed to collaborate on such projects in a letter of intent signed in January 2009.

This news was stale news, since a letter of intent was signed in January 2009. Eventually when that reality sunk into investors, OPTT dropped back to reality, down 14% today.

Royale Energy (ROYL) was up on following news.

Royale Energy, Inc. announced that after reaching a total depth of 6200 feet, it has set pipe on what the Company believes to be a significant new discovery. The Goddard 7-1 which commenced drilling on September 23 was located one mile north of the boundary of the company’s successful Lonestar field. The well was drilled to test a significant 3D seismic amplitude at a previously unexplored depth. At this depth the well encountered higher pressure than those produced in the Lonestar field increasing the expected rate of gas recovery. This new field discovery provides Royale Energy with significant new development opportunities to increase its production and natural gas reserves. Current prices for its PG&E citygate is $5.04 MCF. The Company has 2,000 MCF per day sold through December 2009 at $4.85 MCF.

However yesterday ROYL announced a private placement.

Royale Energy, Inc. announced the signing of a definitive agreement for the private placement of approximately $2 Million of common stock and warrants on October 16, 2009. Funds from the offering will be used for working capital that will allow the Company to accelerate drilling of wells in follow up to the recently announced discovery. The terms of the agreement include the sale of 623,053 shares of common stock at $3.21 per share, and warrants which are immediately exercisable for a period of 5 years into 342,679 shares in the aggregate at $3.53 per share. The warrants contain customary adjustments for corporate events such as reorganizations, splits and dividends, and the exercise price of such warrants is subject to weighted-average anti-dilution adjustments in the event of additional issuances of common stock below the exercise price then in effect. J.P. Turner & Company acted as agent for the placement to a single institutional investor.

The company found a good reason to benefit from the positive news by raising more capital via private investors, which means stock dilution, which means selloff, down 9% today.

Conclusion: Parabolic stocks provide good (predictable) shorting opportunity when the hype dies down.