Small Cap Highlights
Consortium Services Management Group, Inc. (OTCBB: CTUM.OB)
For
Monday, March 3^rd, 2008

Tony Golan
Chief Technical Analyst
StockProfit.com™

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This week I chose to highlight the chart of Consortium Services Management Group, Inc. (OTCBB: CTUM). CTUM is starting a powerful new long-term up-trend. The stock is making higher highs and higher lows and is well above a rising 200-day moving average (the red line on the chart above). Relative Strength Differential (RSD), our proprietary indicator for selecting stock in super-strong up-trends, is well above the 25% threshold line, confirming that the budding up-trend in CTUM is indeed strong enough compared to the S&P 500 and that the stock is therefore likely to continue to perform.

CTUM spent much of the past year in a broad sideways trend, swinging roughly between 0.60 and 1.17 without sustaining much movement in either direction for very long. However, in early February, CTUM took off, going from around 0.90 to a new 3-year high of 1.82 in late February.

CTUM then pulled back, made a higher low of 1.24, and turned back up. On Friday, it closed above the open and near its high of the day, and is now less than 10 cents below the February high. Since that correction took more than three days, we now have a support level established at 1.24.

So, if CTUM now closes below 1.24, it will invalidate the new up-trend. To be a buy, CTUM will now have to rally to a new high, then pull back for three or more days without going below 1.24, and turn back up. Until then, it is far too risky to buy. Buying it around here and exiting on a close below 1.24 would result in a large percentage loss of around 30%, meaning buying it right now from a technical perspective doesn't make any sense.

However, a rally to a 3-year high is a significant enough event to keep CTUM on your small-cap watch list and look for a potential entry point in.

Tony Golan
Chief Technical Analyst

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