Two Stock Bets as Good as California Chrome (CYTR, ICLD)

Just for the record, not all my stock picks are great ones. Most are pretty good, some are just so-so, and every now and then they may even be spectacularly bad. Two of the recent ones, however, are looking like they're falling right into place... InterCloud Systems Inc. (NASDAQ:ICLD) and CytRx Corporation (NASDAQ:CYTR). If you didn't catch the first write-ups or weren't sure about CYTR or ICLD at the time, both budding moves are looking even more likely today.

Let's start with InterCloud Systems. You may recall from the May 30th commentary how shares had moved higher for a couple weeks after getting pounded in March and April. The trigger was when ICLD moved above the 50-day moving average.

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So what's changed in the meantime? After the rally paused for a bit following the cross above the 50-day line (purple), today's 12% pop has carried ICLD above a more recent resistance level at 6.46. Just as encouraging is the fact that we're seeing yet-another high-volume rally from InterCloud Systems Inc. There's still plenty of room to keep rolling, though, before hitting any major headwinds. The next big hurdle isn't until the 9.30 area where the 200-day and 100-day moving average line are about to converge.

As for CytRx Corporation, the last look we took at the stock was back on May 19th. It was also at the beginning of a rebound effort following a miserable first quarter for the stock. It has moved back above a short-term moving average line thanks to a string of higher lows and higher highs. But we really wanted to see CYTR move above its 200-day moving average line to confirm the new uptrend was really underway.

Care to guess what's happened in the meantime? Yes, CYTR has moved above the 200-day moving average line (green) and is still going strong. In fact, shortly after the stock popped above the 200-day moving average line it fell back, found support there again, and pushed off of that line to rekindle the bullish effort. The effort has slowed a little bit as we've approached the end of the week, but the heavy lifting has been done - CytRx is back in an uptrend.

While there's still risk here with both stocks, there's a lot of reward, and a very favorable risk/reward ratio. Either or both could be worth a shot.

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