January is a frigging nutty month for trading beaten up small cap, penny, china ding dog stocks. (except for last year when the market was in freefall). What you will see is with the aftermath of spring 2009 a lot of big caps, smallcaps become microcaps! There can be great opportunity in these names as January starts. See many hedge funds, mutual funds, index funds don’t trade or cant hold smallcap stocks. But they do hold midcap and large stocks. What you have seen this year is many funds liquidated huge amounts of holdings either from deleveraging, margin selling, or just the liquidation of the fund itself essentially driving down many stocks below the 5 dollar threshold. Once it goes below that level many traders will also start to dump the stock as numerous brokerages wont let you hold these type of stocks on margin. Then months later when the Russell or any other index ore even an etf does its rebalancing it drops the stock out of its collection which then starts more forced selling. Next a mutual fund that is supposed to mirror said index will also have to sell….which means more forced selling. It’s a never ending cycle of selling. This type of forced selling can make a stock excessively oversold. Just when these type of stocks rebound slightly comes tax loss selling. As this was a great year for many investors many will unload their dogs to offset their ridiculous gains for the year. People will sell their biggest percentage losers to offset their capital gains this year.

 

Short sellers themselves this time of year will prey upon these stocks as they know that many longs have to unload them. If they can apply pressure on many of these weak stocks the volatility of the drop can be tremendous

 

These stocks can pop for a few different reasons

 

Shortsqueeze: You can get short interests data from shortsqueeze.com it will give u the interest and the days it takes to cover. This is all you need to see how much gas is in the burner. As they have pushed down the stocks for the last quarter January is a perfect time for them to cover their positions since the tax loss selling is over. A big short position can really magnify the gains and make a small cap stock go Parabolic (your getting double the buying pressure). The second force involved in this is the guys like us. The momo traders. Once somebody like me sees the squeeze he goes in and starts buying blocks, other traders see this too and get in for the fun. Now with twitter you get a viral action since people relay the information to each other in real time. The squeezes are much harder and stronger due to the advent of social networking. This squeeze could potentially go on for a week.

 

Also all the tax selling has subsided. No overhang or dark cloud over the stock. Overtime you will see the stocks drift back towards their natural range and valuation. As over time the fundamentals do play out and stocks will slowly and naturally drift to that level of equilibrium. You will also get the buying pressure from the guys who were dumping for tax reasons but now they want their stock back to get back their money ( most people are frigging banana blowers and cant just let a stock go and take a loss. 90% of traders) So they start buying.

 

Now you got a booooooooom baaaaaaaaalin scenario. The banana biters who want their stock back, the short sellers covering, the momo traders jumping in for the epic squeeze, the twitter leaches who miss the first 10% of the move but see so00000 many posts on it that they chase the squeeze. And bam there you go a big punch in the nuts to anybody who is still short.

 

Its already happening look at some of the stocks this week $pip $etrm $ftk $gtxi $rprx $banr a whole host of them are already starting to pop. They got the secret sauce that I listed above.

 

I have below a list of small caps that could. ( I narrowed it down as it was too long) I have in order from the stocks that experienced the biggest losses for the year on down.

 

 

 

No.

Ticker

Performance (Week)

Performance (Quarter)

Performance (Year)

Average Volume

Volume

1

CORS

0.00%

-55.56%

-96.40%

552.47

0

2

HRZB

-17.86%

-72.29%

-95.15%

167.83

87675

3

PCBC

-9.01%

-39.88%

-93.92%

1529.91

688252

4

RPRX

1.49%

-26.88%

-93.54%

1503.57

1795779

5

STSA

0.00%

-70.44%

-93.18%

1538.27

471840

6

FTBKD

-15.32%

-67.02%

-91.38%

145.45

0

7

CACB

-17.86%

-44.80%

-89.78%

222

141635

8

FRP

0.00%

-9.76%

-88.72%

702.51

0

9

CPF

9.09%

-49.03%

-86.85%

1137.52

380604

10

MDTL

-14.29%

-80.65%

-86.67%

340.19

0

11

CIGX

15.25%

-28.42%

-82.25%

1163.1

791385

12

TONE

9.52%

-79.09%

-81.60%

130.21

59490

13

BOFL

24.24%

-66.12%

-80.52%

103.91

113418

14

CTZN

-8.33%

-44.30%

-79.05%

131.97

46473

15

SQNM

3.67%

22.54%

-78.63%

4901.51

945452

16

FBP

-11.45%

-22.92%

-78.54%

1286.21

1228159

17

BUSE

1.08%

-20.59%

-78.47%

300.41

366407

18

BBX

-1.54%

-57.19%

-77.78%

384.01

158800

19

BEAT

0.86%

-13.93%

-76.19%

686.11

363205

20

ABCW

4.76%

-47.20%

-76.09%

261.08

52103

21

GTXI

12.53%

-68.75%

-76.01%

746.88

1107787

22

UCBI

2.21%

-35.71%

-75.77%

1048.17

918283

23

DPTR

-14.39%

-33.52%

-75.00%

9138.67

5639052

24

SNV

0.98%

-44.20%

-74.73%

19313.16

7021434

25

MTXX

3.17%

-26.18%

-74.35%

417.68

169524

26

JTX

-23.18%

-22.32%

-73.17%

722.43

1822009

27

PVTB

0.44%

-63.15%

-72.07%

2017.72

436489

28

MBHI

2.56%

-47.37%

-71.43%

115.6

95566

29

BANR

14.53%

-4.29%

-71.24%

312.84

186679

30

CBC

13.00%

-22.60%

-70.76%

150.87

289636

31

PACR

2.90%

-14.25%

-69.42%

715.8

278157

32

AMFI

-27.39%

-29.63%

-68.51%

476.88

551736

33

RZ

11.32%

-23.87%

-68.36%

730.01

5146220

34

CATY

4.21%

-7.02%

-67.17%

1256.98

567517

35

CTBK

-2.82%

-34.85%

-66.92%

109.63

72317

36

SMTB

7.36%

-55.33%

-65.99%

114.77

128841

37

IBCP

4.17%

-59.68%

-64.62%

165.01

79776

38

CHB

0.00%

-58.33%

-64.29%

1531.67

0

39

YRCW

15.73%

-77.80%

-64.11%

9038.14

4860930

40

CT

15.93%

-58.81%

-63.61%

412.14

248930

41

OSIR

2.46%

2.17%

-63.10%

247.89

183139

42

FCF

0.22%

-18.39%

-62.26%

510.37

337786

43

MBRK

5.56%

-51.69%

-62.00%

370.17

378999

44

WAL

3.69%

-40.99%

-61.05%

696.77

278671

45

SUSQ

4.31%

0.83%

-60.43%

905.46

797091

46

HURN

5.56%

-8.31%

-59.53%

545.21

155070

47

HNSN

13.96%

-17.03%

-58.17%

470.02

682072

48

ENER

-3.64%

-11.02%

-58.03%

2595.38

1910405

49

NPBC

4.96%

-4.67%

-57.65%

1586

962620

50

PGNX

1.85%

-19.08%

-57.23%

158.67

70339

51

CHP

-8.11%

-36.74%

-56.55%

210.84

166842

52

HNBC

2.37%

18.86%

-54.36%

208.69

116009

53

PNFP

7.90%

13.67%

-51.46%

265.8

150773

54

STC

10.47%

-10.17%

-51.24%

286.29

131504

55

HBAN

-1.34%

-15.95%

-51.13%

20907.28

6343774

56

DRL

25.00%

-1.06%

-50.00%

167.5

136005

57

QCOR

9.32%

-15.34%

-49.62%

691.08

646856

58

ESLR

7.28%

-17.77%

-49.22%

3004.18

4505581

59

RAS

-2.19%

-56.35%

-48.46%

746.69

1447906

60

STBA

2.20%

35.09%

-48.33%

135.7

66148

61

PCS

2.12%

-19.85%

-48.08%

8848.28

2216861

62

EBS

8.00%

-23.12%

-47.80%

340.66

143085

63

ZION

-3.48%

-29.87%

-47.66%

6244.31

2791898

64

LDK

0.43%

-21.71%

-46.42%

4712.92

1805508

65

ABMD

3.51%

-11.16%

-46.16%

237.3

181399

66

FTK

34.31%

-32.51%

-45.63%

568.81

730663

67

NWBI

-0.27%

-51.17%

-45.13%

559.95

1999643

68

GMXR

-3.90%

-7.38%

-44.51%

1174.94

347871

69

VLNC

10.99%

-44.51%

-44.51%

797.3

8321605

70

DRYS

-1.17%

-12.92%

-44.37%

20981.83

7099190

71

FMBI

1.18%

-2.63%

-44.06%

542.55

244422

72

ASBC

5.18%

-0.09%

-43.83%

1795.44

795014

73

DSCO

-4.55%

-43.24%

-43.75%

4940.19

2216707

74

FNB

-1.84%

-1.84%

-43.69%

728.72

425913

75

BBI

2.90%

-39.32%

-43.65%

2426.3

1105550

76

WL

-0.32%

-11.60%

-41.81%

761.04

384809

77

WTNY

1.31%

-4.33%

-41.75%

1230.41

287874

78

HAFC

-1.61%

-26.06%

-40.78%

400.62

300762

79

JAKK

-1.69%

-15.96%

-40.77%

344.76

182254

80

LAB

4.03%

-20.67%

-40.71%

393.47

121739

81

CUZ

-1.29%

-11.84%

-39.89%

1059.44

694608

82

SUN

-1.62%

-8.05%

-39.16%

2880.98

1665066

83

WNR

0.00%

-26.77%

-38.66%

3316.02

1398237

84

SPTN

3.86%

1.06%

-37.80%

158.89

57358

85

WINN

-0.50%

-29.27%

-37.70%

420.2

322613

86

LCC

5.43%

-0.41%

-37.26%

9749.65

8448132

87

MATK

4.87%

-17.72%

-36.72%

406.38

201617

88

AOB

-1.14%

-11.59%

-35.94%

1003.52

2016246

89

VPHM

0.72%

-15.15%

-35.48%

1073.86

405248

90

ABK

5.00%

-52.81%

-35.38%

17183.4

4003341

91

CCRT

0.66%

-23.94%

-35.38%

211.88

173298

92

SPWRA

-2.04%

-21.12%

-35.11%

2467

1341832

93

EK

0.00%

-12.93%

-34.50%

6834.25

1574814

94

LEAP

-1.07%

-11.13%

-34.36%

4002.14

1130018

95

IMN

-1.11%

-7.36%

-34.12%

286.81

220443

96

FLWS

12.00%

-28.21%

-34.03%

188.56

107982

97

UBSI

5.76%

6.31%

-34.02%

321.06

347812

98

ABR

16.07%

-33.45%

-33.90%

145.84

80471

99

LPHI

2.70%

23.15%

-33.29%

100.92

125041

100

DAC

-1.09%

-6.19%

-32.69%

179.65

71691

101

RST

0.00%

-26.82%

-32.32%

194.35

514157

102

ALY

7.18%

-14.06%

-32.18%

467.25

187143

103

HOTT

7.11%

-17.47%

-31.72%

1324.93

561611

104

MGM

-1.16%

-24.54%

-31.61%

26961.43

10566678

105

AVD

2.69%

-8.13%

-31.10%

100.62

91357

106

TRST

-3.09%

-1.26%

-30.56%

263.91

225987

107

RF

-2.19%

-16.77%

-30.48%

30219.44

10357782

108

CONN

5.36%

-47.70%

-30.42%

294.85

222896

109

LMNX

2.95%

-14.27%

-29.68%

326.3

113181

110

CXM

0.00%

-70.06%

-29.33%

1464.74

2696966

111

STI

-3.16%

-8.78%

-29.15%

8506.59

3490376

112

FR

5.11%

-9.17%

-29.14%

1032.89

459928

113

CMED

-0.50%

-15.03%

-28.54%

514.58

389421

114

KNDL

3.82%

8.07%

-28.11%

189.49

75975

115

ONB

3.80%

14.57%

-28.07%

951.26

928686

116

FTEK

-4.13%

-31.97%

-27.67%

180

428699

117

SUF

-10.53%

-53.42%

-27.66%

427.98

394956

118

ISYS

5.95%

23.86%

-27.63%

124.4

49468

119

MBFI

3.34%

-3.18%

-27.39%

452.89

155549

120

AMR

1.70%

-2.88%

-27.18%

15568.31

7841384

121

ALNY

4.71%

-22.29%

-27.13%

282.58

103191

122

XNPT

7.25%

-14.95%

-26.28%

357.23

279427

123

PFS

-0.28%

4.23%

-26.23%

359.98

140683

124

TBSI

-2.37%

-15.33%

-26.22%

273.27

186020

125

EGLE

1.20%

-2.50%

-25.81%

2770.69

1075396

126

PRKR

5.14%

-55.88%

-25.51%

309.46

453306

127

GB

1.65%

-13.38%

-25.40%

197.16

144622

128

COGT

5.70%

1.29%

-24.83%

671.63

298288

129

GBCI

1.92%

-6.18%

-24.81%

737.52

283423

130

ZLC

-6.99%

-66.62%

-24.02%

973.49

3177037

131

ACAS

4.60%

-24.24%

-22.84%

4745.13

4624702

132

BLUD

5.91%

16.52%

-22.50%

582.99

263170

133

TLT

-1.20%

-7.94%

-22.45%

3520.95

1919066

134

PSYS

0.14%

-18.51%

-22.41%

1223.78

353290

135

JBLU

0.36%

-6.59%

-22.11%

6642.96

6527411

136

CVBF

7.77%

14.29%

-21.76%

1117.38

1078253

137

ISIS

10.76%

-25.02%

-21.58%

1465.4

823199

138

VLY

2.98%

16.69%

-21.43%

917.94

317324

139

GMR

-1.40%

-8.32%

-21.23%

948.53

447316

140

CMTL

3.23%

8.60%

-21.21%

292.91

251792

141

AKRX

-2.67%

30.00%

-20.87%

440.6

168684

142

CBST

2.03%

-6.36%

-20.82%

820.21

297407

143

PACW

10.88%

5.29%

-20.59%

290.08

226762

144

BRNC

-2.84%

-23.74%

-20.43%

336.12

138464

145

VMC

4.51%

-1.49%

-20.42%

1123.71

652703

146

GVA

4.05%

14.94%

-20.38%

691.16

205405

147

APOL

5.52%

-15.96%

-20.36%

3351.2

1166411

148

JEC

1.99%

-17.24%

-19.98%

2261.3

1093426

149

REG

3.58%

-4.26%

-19.85%

1464.76

514732

150

TRE

10.65%

20.77%

-19.29%

428.78

214170

151

BKC

2.15%

11.82%

-19.27%

1750.51

694240

152

UMBF

1.94%

-3.03%

-19.18%

160.89

123942

153

CEPH

4.25%

7.16%

-19.15%

2256.35

902273

154

TPC

4.45%

-8.87%

-18.73%

257.32

165155

155

AVAV

3.06%

6.24%

-18.61%

160.8

100161

156

KIM

5.16%

4.45%

-18.43%

8055.72

3083379

157

TGIC

-11.43%

-76.87%

-18.42%

171.67

0

158

AF

0.95%

13.66%

-18.29%

1081.2

718395

159

TITN

5.20%

-4.86%

-17.92%

213.85

168523

160

PMTI

4.64%

-41.03%

-17.87%

172.33

192052

161

EMKR

-1.83%

-20.15%

-17.69%

679.41

2245486

162

TASR

-2.03%

-9.75%

-17.61%

447.75

388919

163

MIR

0.58%

-6.37%

-17.49%

1604.9

596123

164

WTI

-1.44%

-1.77%

-17.42%

721.42

384581

165

SGMS

0.00%

-9.48%

-17.27%

1182.07

345595

166

CVA

3.64%

6.00%

-17.08%

1110.85

930007

167

ALJ

-0.80%

-24.24%

-17.00%

183.51

1085561

168

THOR

-1.28%

-11.79%

-16.65%

845.97

556191

169

HAWK

2.45%

-31.62%

-16.42%

129.08

64794

170

TWGP

4.50%

-5.49%

-16.05%

305.96

138370

171

DCGN

-11.11%

-68.63%

-15.79%

3889.96

1777191

172

COCO

3.92%

-25.42%

-15.76%

2731.04

1299442

173

BEBE

2.84%

-19.05%

-15.62%

704.59

495937

174

ARNA

-5.88%

-21.43%

-15.59%

2311.05

2637792

175

CYPB

-2.53%

-29.82%

-15.35%

341.53

356794

176

BPFH

0.88%

-13.25%

-15.17%

661.05

468520

177

RRR

-0.14%

-0.68%

-14.91%

578.62

190844

178

EPIQ

5.32%

-3.59%

-14.72%

289.71

105560

179

ONXX

2.60%

-8.76%

-14.37%

1154.31

428041

180

CBU

1.69%

7.48%

-14.27%

167.78

97953

181

PVA

2.04%

-5.01%

-14.26%

524.97

284581

182

ELY

1.94%

4.10%

-14.18%

1102.71

479861

183

ASTE

3.82%

4.54%

-14.08%

197.31

83259

184

NLS

-6.40%

11.76%

-14.03%

111.54

142052

185

MBLX

-2.32%

6.73%

-13.92%

165.13

142557

186

GDP

2.58%

1.02%

-13.82%

914.46

605838

187

MMR

12.67%

10.17%

-13.78%

1810.37

2332246

188

PNX

-3.40%

-13.94%

-13.15%

1458.14

554634

189

USU

-4.18%

-18.75%

-13.14%

1638.14

1117145

190

SONC

2.81%

-4.33%

-12.82%

600.35

424504

191

MYGN

8.49%

-4.34%

-12.75%

1459.2

314254

192

KSWS

3.52%

10.50%

-12.28%

119.63

80211

193

TOL

2.39%

-5.71%

-12.18%

4268.49

1170936

194

HW

-1.66%

49.37%

-12.15%

1194.7

2245220

195

VIVO

0.79%

-14.04%

-12.02%

221.6

179353

196

ECHO

-3.19%

 

-11.52%

214.54

16028

197

AGP

-0.11%

15.85%

-11.38%

721.73

711553

198

STXS

-4.88%

-13.33%

-11.36%

299.57

248451

199

ESE

-1.78%

-9.64%

-11.18%

228.52

105023

200

WTR

0.62%

4.05%

-11.12%

1407.06

899892

201

IBOC

5.11%

14.86%

-11.08%

386.1

308191

202

WBS

0.00%

-2.48%

-10.81%

718.25

403830

203

HAIN

9.64%

-12.56%

-10.63%

497.2

361099

204

IAT

-0.38%

-0.05%

-10.53%

157.03

47033

205

CRK

0.33%

4.32%

-10.52%

658.32

326231

206

OPTR

-2.43%

-20.82%

-10.49%

184.92

274189

207

ALKS

2.03%

1.16%

-10.23%

919.13

1061760

208

JACK

0.91%

-3.30%

-9.78%

765.39

287892

209

AFAM

3.86%

34.70%

-9.74%

162.31

100399

210

SVU

-0.24%

-15.91%

-9.59%

4228.5

1829728

211

ERII

-3.38%

14.91%

-9.50%

357.91

291690

212

SKH

1.46%

-7.62%

-9.48%

139.01

58115

213

LNG

-0.77%

-13.13%

-9.47%

554.02

485837

214

UCO

14.35%

22.34%

-9.20%

4866.17

3475178

215

SRDX

-3.69%

-5.90%

-9.18%

139.92

56269

216

EXM

-5.19%

-3.47%

-9.09%

2001.61

696890

217

INWK

3.83%

24.63%

-8.85%

156.07

112326

218

CMLS

0.00%

29.71%

-8.84%

150.86

48825

219

SMBL

5.98%

1.47%

-8.82%

539.87

319212

220

PHM

5.84%

-12.31%

-8.78%

7747.32

4039398

221

SBIB

5.05%

-26.29%

-8.46%

989.18

922290

222

APEI

3.99%

-0.73%

-8.17%

173.04

143384

223

MHGC

-4.04%

-25.04%

-8.15%

301.74

122373

224

SWY

1.85%

8.77%

-8.06%

5600.74

1829357

225

OPEN

-0.97%

-3.50%

-7.91%

135.84

53013

226

HOMB

3.97%

12.23%

-7.73%

111.63

76859

227

CNVR

0.00%

-4.00%

-7.69%

106.76

8400

228

CCC

2.21%

-6.47%

-6.77%

735.01

1063645

229

PARD

-5.26%

-75.94%

-6.74%

3233.05

1953737

230

HEV

8.46%

-3.75%

-6.71%

749.21

1450982

231

PQ

-2.77%

1.12%

-6.66%

1623.84

572120

232

CLH

-0.79%

4.57%

-6.51%

169.21

108589

233

AOL

0.73%

 

-6.46%

3940.56

1714166

234

FORR

4.25%

0.88%

-6.13%

101.71

50513

235

UMPQ

4.72%

26.38%

-6.13%

1066.33

1077714

236

IRM

-0.73%

-14.50%

-6.07%

1236.54

901020

237

FCEL

29.89%

-14.92%

-5.93%

774.15

7465936

238

STEM

-0.78%

-22.42%

-5.88%

2834.13

1041782

239

WMGI

2.67%

6.83%

-5.82%

390.3

130691

240

FULT

1.25%

20.76%

-5.82%

1308.1

517270

241

NUVA

7.05%

-18.64%

-5.37%

1088.79

462842

242

FTO

3.25%

-14.17%

-5.24%

2806.01

1797449

243

ROYL

-2.21%

26.67%

-5.00%

370.3

102886

244

NAL

0.99%

14.51%

-4.90%

901.32

336241

245

GTIV

2.54%

9.30%

-4.82%

224.98

109371

246

WIBC

12.77%

12.92%

-4.77%

137.25

86490

247

MRTN

0.33%

8.13%

-4.64%

134.95

55639

248

ALGT

-1.66%

21.99%

-4.61%

376.39

188326

249

FRED

2.73%

-19.29%

-4.60%

331.81

259877

250

GAME

-0.19%

-10.61%

-4.37%

2265.13

584078

251

NITE

2.45%

-29.66%

-4.27%

2190.06

1650567

252

PBI

0.53%

-7.55%

-4.23%

1751.13

1778812

253

LXK

1.21%

19.63%

-3.72%

2137.32

525727

254

NAT

-1.44%

2.97%

-3.55%

504.28

266783

255

LHCG

2.12%

15.68%

-3.50%

151.24

78807

256

RGLD

-0.25%

5.03%

-3.17%

731.15

574588

257

ALSK

3.16%

-10.61%

-3.08%

454.89

796008

258

TWI

4.43%

-5.76%

-2.79%

666.29

380067

259

BJ

0.36%

-7.25%

-2.51%

1191.39

1119352

260

CAL

-0.40%

6.60%

-2.49%

7229.1

5168750

261

MLM

1.89%

-0.71%

-2.24%

464.24

376346

262

IDCC

4.71%

15.05%

-2.15%

863.31

416315

263

BRKL

0.92%

0.71%

-1.88%

340.83

144020

 

 

 

 

 

 

 

 

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