Another Top Gainer Energy Stock

I know this might sound a bit perverse, but I've been looking forward to a nice, big down day for stock prices. Of course, if you're bullish, you're on the lookout for a dip to buy at a better entry price. And today, some of my favorite stocks are cheaper than they were yesterday. But that's not really why I was looking forward to a big, red candlestick on the charts.

No, I was hoping to get an opportunity to have a look at some of the small cap stocks, and the rule for buying these stocks is to pull the trigger after they've taken a hit. And because we know that small cap stocks tend to outperform larger capitalized companies on both the upside and the downside, we should be looking at some pretty substantial one-day declines.

In late afternoon trading, the Dow Industrials and the S&P 500 have put up losses of 1.9% and 2.37%, respectively. The Nasdaq, which has outperformed both indices lately, is off 2.8%. We might expect the Russell 2000 small cap index to be down more, and it is, off 2.87%.

But that doesn't tell the whole story. Let's once again peruse the Top Gainers list. The first thing we see is that, while there are some double-digit winners, their gains are capped in the +20% range. And of these, the quality seems lower than usual. Take Chelsea Therapeutics (Nasdaq:CHTP), for instance...

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