The market may be getting hammered, but I can’t seem to just dismiss a few really good looking small cap stocks just because the broad market’s under fire. Take a look at Bionovo Inc. (NASDAQ: BNVI), Palatin Technologies, Inc. (AMEX: PTN), and Tii Network Technologies, Inc. (NASDAQ: TIII) to see what I mean. All three still look like great bullish setups.

How does the old saying go? Buy it when nobody else wants it, and sell it when everyone else wants it? That’s pretty much what I’m seeing – proverbially – with small cap Palatin Technologies, Inc. Yes, it’s down for the week, and down sharply from last week’s peak of $1.38 (PTN is currently at $1.03). Check out the way volume has not only been light, but gotten lighter, on the way down though… this selling isn’t the majority opinion.

All that being said, I know it’s not easy or fun to try and catch a falling knife, and that’s exactly what PTN is here. After last week’s huge bounce though, the bigger-picture bulls have let the cat out of the bag. The next decent upward push from Palatin Technologies will very likely put this small cap stock back in that same bigger picture bullish groove, and get this long-term rebound started once and for all.

Tii Network Technologies, Inc. is the Rodney Dangerfield of the small cap stock world…. it gets no respect. Actually, it gets no attention. Either way though, this off-the-radar company has kept TIII off the radar as well, though we’re starting to see some clear interest budding now. In fact, I think today’s move may be the one to kindle a great (read ‘trade-worthy’) move here.

There are two big things going on here. The first is just the fact that Tii Network Technologies has hopped over a nagging resistance line (orange). The second is that it simultaneously hurdles the 50-day and 200-day averages today. While I’m not crazy about the small gap it left behind [it may even come back and clean it up first], the underlying story here is starting to get traction. What’s that story? This small cap company is actually quite profitable. (Crazier things have happened, ya’ know.) Either way, the hard work for TIII shares is done.

Last but not least, a momo (momentum) play from the biotech world... Bionovo Inc. This company is a development stage company, which is a nice way of saying there are no revenue-bearings products yet. That doesn’t really matter though, as biotech stock trade on perceived future value of the pipeline. BNVI is no exception. But, it looks like the perception is changing to a more optimistic one as I write this, making this small cap stock a decent long trade for at least a few days.

It’s strictly a momentum play as it stands right now. The company’s been doing a much better job with telling its story and explaining why the Bionovo R&D should get investors excited. And, the stock is responding. I just don’t know how much gas is in the tank. The 200-day moving average line (green) at $0.90 will be a litmus test. If BNVI can clear that hurdle too, look out above. Given the $0.08 difference between here and there though, I think there’s room and ample upside to wade into this small cap now.