CXM Watch

Cardium Therapeutics Inc. (CXM), a medical technology company focused on heart disease and strokes, moved into bull phase on Person's Proprietary Signal on Friday, but so far the price action has been disappointing.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
CXM $0.47

At 1:30 p.m. Eastern

CXM has retreated 9% from today's high and is now trading around the top of Friday' range.

Like any biotech company, CXM lives and dies by regulatory approval of its products. So it is highly prone to news surprises.

Although CXM is a penny stock, with a market cap of $37 million and respectable volume, it is the sort of play that I would consider under my trading rules.

CXM hit an all-time high of $3.19 in October 2007, and it has since then traced a gigantic flat zig-zag. It's trading now about a dime above the ll-time low of 38¢ set in December 2008.

On the bull side, aside from the pps phase, the macd has been tracking toward the zero line and is within a hair's breadth of moving into bull phase. Although the parabolic sar is in bear phase still, as it has been since May 5, it is common for the psar to switch phases within a day or two of the pps.

On the bear side, there's the disconnect between the two indicators. Should the pps and psar remain mis-aligned, then the bull signal has no credibility.

Also, the macd isn't showing a steep move -- it lacks conviction. Also, the average directional index is low, at 17. At that adx level, signals often result in little price movement. That is mitigated, however, by the low price of the stock. Even the minimum 1¢ movement is about 2%.

Reversal Levels

• $0.57, +21.3%
• $0.54, +14.9%
• $0.53, +12.8%
• $0.51, +8.5%
• $0.47 <== You are here.
• $0.45, -4.3%

The 47¢ level, which marks today's low, has provided consistant support the past few days.

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Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.