Palm One

I've been asked about Palm One (PLMO) more than any other single stock in recent days. After all, people absolutely love their PDAs, although I've yet to figure that one out. I must be one of the few on earth who has never owned one. And, frankly, I still don't have any desire to.

So, with that bias understood, let's just look at the chart. Clearly, the interest in PLMO surrounds the recent breakout of the downtrend. Unfortunately, there's very little volume to confirm that breakout. While I see the stock up today on unusual volume, it is now testing a key level of resistance. False breakouts in these situations are common (in fact we saw one not all that long ago in this very same stock), so if you're really a bull, you'll want to keep a rolling stop. There's little in the way of confirmation that the uptrend we've seen will be sustained. Sure, it could happen, but I'm not looking for opportunities everyone sees out there. That's simply not my game.