Again, SMC subscribers on board Arena Pharmaceuticals Inc. (Ticker: ARNA) and YRC Worldwide (YRCW) are enjoying very strong returns.

Let’s talk briefly about YRC Worldwide:  The stock shot higher this morning on Fedex’s favorable news about the shipping industry.  Great.  We now have a pair of “bookends” on the stock.  The left bookend is the move in the stock on the highest volume ever recorded for this company on July 12th;  the right-hand bookend is marked by today’s jump higher in the stock on also extremely high volume, but with slightly less volume than on July 12th.

For us, this means that the stock has gotten about all it’s going to get from secondary market news of other companies in the DOW Transports performing well.  The next move – if it comes – is going to have to be under its own power of good earnings or the hope of better earnings to come combined with less current losses.  YRCW reports earnings next Tuesday, August 3rd before the opening bell.  We could be wrong about this and yet see another burst of buying momentum move the stock higher prior to next week’s earnings, but we think this is less likely after this afternoon’s sell-off in the stock on high volume.

YRCW stock hit 0.428 this early afternoon and then sold off hard a couple of hours later, taking it down to 0.31/share before it closed at 0.372/share.  That’s a lot of volatility and those who bought this morning on strength are wishing that they had waited a bit longer to hit the buy button.

If the stock had managed to hold above 0.40/share, we would be more open to the idea of further price advances before their earnings report.  We’ll simply have to see.  The truth is, there are plenty of people who were holding the stock a couple weeks ago when it sat at 0.11/share and wishing that they could sell at a significantly higher price.  Some of those people did so today and ran to the bank.  SMC subscribers who are in this stock from the high teens are up almost 100% on their investment.

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