Update STKL Sell, IMAX Buy

Sold STKL for a .80% loss today. Rational is mostly explained in the chart. High volume sell-off prior to earnings don't typically sit well with me. Sunopta was creating higher highs and higher lows, as well as building support after each sequential move. Today's -7.57% move slashed through weak support at $12.70 and strong support at $12.50. This coupled with today's candle stick analysis and I decided to cut my losses and move on. Earnings are always a gamble and I refuse to play them if a company demonstrates weakness prior to the release.

I also bought IMAX Corp. (IMAX) for $5.02 prior to the close. The stock has been rallying higher due to contracts and record attendance during the debue of the movie 300. This weekend's release of Spider Man III should only strengthen the IMAX venue.

Technically the stock is sitting enjoying support at the 200 DMA as well as a firmly established lower trendline.

The risk here is with some financial irregularities which has forced the company to delay the filing of its annual report and thus possibly facing a Nasdaq delisting. Ceteris paribus, the company should file shortly and lift the vail of uncertainty.