Dropping early in the first couple of hours of trading today as it has done in the past few sessions, CNIT only partially recovered from its LOD of $2.23. Anticipating a small rebound around the 50dma, I bought some more shares at $2.25 and was rewarded with a quick sell at $2.30. I grabbed a few more when CNIT hit $2.25 again expecting a small rise late in the day as CNIT has done multiple times in the last week.
Today the markets were quite weak, with the media pointing to US debt talks as the major reason we ain't partying (read: rallying further). That said, AAPL and other large cap tech stocks are having a terrific earnings season so far. If the market, alongside these great earnings, can begin to rebound, we might see some collateral goodness hit CNIT.
A few technicals are playing in favor of CNIT at this time. The weekly and monthly RSIs are moderately oversold (in the 30s), the 50dma is acting as support, and last Friday's hammer is still a positive indicator that buyers are interested in keeping this stock afloat and taking advantage of dips to buy more shares.
In terms of volume, there was nothing glorious about today, as the number of shares traded came in under Friday's session.
There wasn't a lot of noise in the media either today, though Zacks Investment Research did call out CNIT in a report about IT companies with high gross margins (see here).
On a related note, I've been training one of my cats, Tofu, to trade CNIT. See here...
In the picture he's pointing to the high back in October and saying we're headed back there. Enough said :)
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