US Global Investors (GROW), making a comeback?

US Global Investors (GROW) is a stock that went too far and too fast in too short of a time. I really like the CEO, Frank Holmes, and I'm curious if the stock can ever retest those highs of last year. They had a huge move yesterday on a report that their mutual funds are kicking ass. It is no wonder given that they specialize in emerging markets and metals.

The weekly TD Sequential says that we can expect one more down week, but then it should be off to the races.

Leaders Tank! (GROW, ROS, VTS, IAAC, CRVL, GEF)

Last month I was getting antsy about shorting this market. As a result I nibbled a little at the QID and was stopped out rather quickly. What I quickly realized was that I was forgetting one important fact about market tops, namely, the leaders must tank before the rest of the market follows suit. I pointed out US Global Investors (GROW) as one of the leaders to watch.

Check out the first chart I have on the left. GROW has tanked and tanked hard! As I said yesterday, I tried to short it yesterday but couldn't get my hands on any shares to borrow. It looked like a fortuitous event when GROW shot up 5% this morning. But that quickly changed when a midday reversal took place.

Check out some more of the leaders.

I have a particular fascination with climax tops. ROS is a classic example.













Here are some more leaders that have come off of their highs with volume.

Buys, Sells, and Naked Shorts!!!

The excitement continues today. I put in another buy order for the QID again and this time my order was filled. It was pretty scary watching it sink another 2% after I bought it. The good news is that the Nasdaq closed under yesterday's highs, which suggests that we will probably head down again tomorrow. We shall see.

I took my principle off the table for Flotek Industries. I'm going to let the profit ride. There is strong support at around 22.5 and it will be interesting to see how it reacts when it reaches this level. The bottom line is that these last couple of days have been the first days of strong distribution since FTK took off in October. I'm going to be very cautious right now.

I found a very interesting stock today that I think I'll buy tomorrow. Ingles Markets, Inc (IMKTA) is a supermarket chain in the southeast. It popped up on my CANSLIM screen recently. Today, she broke out of a flat base on the second day of big volume. Very nice strength considering the volatility we've seen.

Finally, I tried to short US Global Investors (GROW) today but couldn't because there were no shares available to borrow. Too bad because it dropped a whopping 13% today. Bummer. I did short Ford (F) today as it bounced off of confluence again.