Dear Fellow Traders
It was another interesting day in the market place as the Dow Jones Industrial Average remained near its 14-month high.
**** PLEASE TAKE NOTE THAT WE WILL NOT HAVE ANY ANALYSIS ON Dec 31st and we will be back on January 4th.*** It looked like it was going to be another positive day for the market however some late-day selling caused the DJIA to end in negative territory. Volume is still low so I don’t really want to make any conclusion out of this.
The rally in the tech sector hit a stumbling block Tuesday. The NASDAQ was under pressure for most of the day and closed in negative territory. This move was not surprising; as we can see from QQQQ, the ETF of the NASDAQ Composite, the index rallied for six days straight. It is going to take a few days to determine whether this is just some profit taking or a shift in momentum. I think we could still take a run at the August 2008 highs before we see a major decline. BUT ALL OF THIS IS ON VERY LOW VOLUME…
I don’t think we are going to see a major decline in stock prices, mostly because what is happening in the gold market. If investors are worried about the stock market then we would see them move into safe haven investments like gold and the U.S. dollar. However we are not seeing that action at this moment. GDL, the biggest gold ETF had a down day today. The EFT is trading near the bottom of its range. I think we could see it test support at $106, before getting the signal to re-enter..
Let’s take a look at some of the stocks we are watching. First up is RVBF, which broke below $0.10. I think we are going to see it retest support at $0.08 before any major buyers step in. Volume is still really low and it should remain until the Holiday Season is over.
Another stock I am watching is EYSM. It hasn’t been doing much in the last few sessions. What has been really interesting is that this stock is holding support at $0.02. It hit that mark today and then buyers stepped in quickly. It continues to hover around the 20-day moving average and once the market is back to its regular operations this stock could be ready to move higher.
I am not as optimistic about BGEM in the short term. The stock broke below support at $0.30 and I think it could easily take a run down to $0.20 before buyers come into the market. We have been waiting for volume to return and I think we will have to wait a little bit longer.
I also wanted to mention the stock BRYN. I haven’t talked about it for a while because it has been trading sideways for a few weeks. It is slowly trending lower but I think we could see it hit support around $0.20. That might be a good entry point but again I want to see volume return. It will most probably happen with the next upside move of Gold…
On this i want to wish you a Great Year 2010 and we are working hard at developing new products for you and new applications to make sure you see even better profits in your 2010 trading.
Enjoy the last few days of this Holiday Season and we will see you back Next Year !
Dear Fellow Traders
Most of the holiday season is over and it looks like some investors are trying to pick up some post Christmas deals in the market place.
Volume may be low but the markets are started the week off on a good note. A chart of the Dow Jones Industrial Average is moving upward. The index is right near the top of its range so expect some resistance and if the sellers are on holidays, then we could go see the break to the upside of this range. I want to see if the DJIA can break the intraday high of 10,566.88, which was made on Dec. 14. Because the DJIA is near a strong resistance point you do need to be careful and watch the price action closely. It might not take much for investors to cover their long positions and drive the price back down.
I think the tech sector is helping to bolster the entire market. On Monday the NASDAQ finished positive for the sixth straight session. Let’s take a look at QQQQ, the ETF of the NASDAQ Composite; I am still watching the August 2008 high of 48.57 as the first test of any major resistance.
Let’s now look at some of the stocks we have been following. First on our list is EYSM; We are still waiting for a valid reversal sign. It closed Monday slightly down but in intraday action it bounced off support just above $0.02. This could signal a bottom in the stock but I need to see more signs of a reversal before I am ready to reload this stock.
RVBF is another stock we are watching that also had a down day on Monday. The stock was under pressure for most of the day and closed at $0.105. I am watching the $0.10 area very closely because I think it will act as support and once the volume comes back this one should go…after the holidays is when it think it should happen, until then buying on weakness could be a great strategy
There is also not a lot of action in BGEM. This is a stock we have been watching for while waiting for the volume to return. The stock continues to hold support at the $0.30, which tells me investors are still interested in the stock but are waiting for conditions to improve.
New to the list today is the stock GETG. It is a relatively volatile stock and appears to have bottomed out at 0.18. The strong performance in the last two sessions is a positive sign that the stock might be ready to go higher but I want to see some more volume return to confirm the rally. Because it’s getting out of a downtrend and it’s still not clearly out of the wood yet, this is for more aggressive traders only…
*** Also keep an eye on BRYN and KNDR, both have different signs of bottoming…KNDR is under accumulation at the bottom..watch it or buy some…
Have a great trading day.
Good Morning,
I hope everyone was able to rest during the four-day holiday celebration. I sometime have a tough time to leave the market behind and relax properly, when it’s closed then i know i dont miss anything which feel even better… Markets are open for 3 days 1/2 this week. We might not see as much volume this week as normally, but there are definitely some strong sector that are part of the NASDAQ that are flying right now, it’s great for options trade. As far as Penny Stock goes, there are some interesting patterns but volume are low and more difficult to trade.
So at that point it becomes a personal choice and i decided to take it easy this week, so you will see post about some of the stocks on our watchlist but i will not be trading actively in front of my screen before the 4th.
Despite the low activity there is some excitement in the market that we need to pay attention to. The Dow Jones Industrial Average is trading near the top of its range and if it continues on this path, we could look to break through resistance at December’s high of 10,566.
I think there is a good chance we could see new highs in the Dow mostly because of the tech sector. The NASADAQ continues to make new highs for the year and that optimism is spilling over to the rest of the market. However, QQQQ, the ETF of the NASDAQ composite, is close to a strong resistance (48.57 is August 2008 high, which is the area I am closely watching) and with little volume traders might not need many reasons to take some profits.
I also want to show a chart of gold prices. The precious metal has made a lot of headlines this month. Taking a look at the biggest gold ETF, GLD, we can see some consolidation in prices. $105 appears to be some support but I don’t know how strong it is. We need to get a strong reversal sign.
Let’s now look at some of the stocks we have been watching recently. Because of the holiday season volume is extremely low and it will be difficult to determine any specific patterns. RVBF continues to do relatively well and on Thursday support held at $0.11. This is a good sign of strength and might encourage more buyers when investors come back into the market place.
EYSM is also holding its support level at $0.03, which is encouraging. I do want to be a little careful because I don’t know how strong $0.30 is. We might take a run at 0.02 before buyers come back in.
I like what I am seeing in BGEM. The stock is holding the support level of $0.30, which is around the 20-day moving average. I want to see some volume come back into the market but this could be a good area to buy.
I have also started watching ANYT and I like what I see. The stock hit resistance around $0.10 and we saw some profit taking but there were some signs of strength on Thursday, which tells me there are still buyers interested in this stock. If the stock falls to $0.05-0,06 it could be a good entry point and we would need to get a clear reversal sign with that.
Finally URGP appears to be hitting resistance at $0.12 but volume keeps going down so I just want to sit on my hands and watch what this stock is going to do.
Have a Great Trading Week !
Dear Fellow Traders,
The holidays are almost here… Just a reminder that today the market closes early but by looking at some of the volume lately I think that most of the traders are already celebrating.
MERRY CHRISTMAS
Now The first chart I want to show you today is the VIX index, or as some people call it the fear index. The index broke through support at 20, which means volatility is fairly low. Some of the chatter I have heard on the street is that this could mean we are in for a pull back. I think this drop in volatility is more of a reflection of the low volume. And as long as VIX keeps trending down we are okay…
Wednesday was the fourth positive day in a row for the tech sector. Looking at QQQQ, the ETF of the NASDAQ composite it continues to make new highs and on decent volume.
There is not much to write about day regarding the DJIA. Volume is low and the index didn’t do much on Wednesday. This leaves me to believe that people are waiting until after the holidays to take a position on where the market is going.
Now let’s take a look at some of our stocks. I think BGEM is exciting. I was expecting to see some support at $0.30 and I saw it Wednesday. $0.30 is just below the 20-day moving average but as i will be taking it easy in the coming week, i did not take a position, but in normal situation i think this would have been a good place to initiate a small entry size position, with the expectation that a new higher high is made.
RVBF is also exciting because I am seeing some consolidation. I think this should hold over the Holidays and then resume in the New Year.
We were expecting a pull back in EYSM and got it and now we are seeing some good price action at 0.03. If the stock can hold this level this could be another stock that takes off very quickly.
I was also expecting a pull back in ANYT. I put this stock on my watch list Tuesday and it still looks promising. But I’m not in a hurry. I will continue to watch this stock and wait for a pull back and a good entry point.
Finally, URGP was a new addition to the watch list on Tuesday. I think it could run into some resistance at 0.13 cents and until then I will be content just to watch it.
Happy Trading and Happy Holidays and take the time to relax like i will do, it’s important on occasion to leave the table and refresh your spirit….
******** From the 26th to the 3rd, i will be away for another Kitesurfing trip with my family, but i will still monitor the market and have some trades in…i will keep you updated….
Francis
Dear Fellow Traders,
Some of the chatter I have been hearing is that it is pretty quiet on the street and with only a one full day of trading left before the holidays I am not surprised.
Volume might be low in the markets right now but we are still seeing some pretty exciting moves. It appears the bears have taken an early holiday because the bulls were in control Tuesday.
The tech sector was once again strong with the NASDAQ leading the markets. Monday the index broke out of its tight range and as we can see by QQQQ, the ETF of the NASDAQ it keeps moving higher. The ETF continues to make new highs for the year. In fact it is the highest level since September 2008. That is also how far back I have to look to see some resistance. The 2,300 level could prove to be a little sticky.
On Tuesday the DJIA had its second positive day but volume continues to drop. I would not be surprised if today is even lower volume. There is not much news to report because the index just can’t seem to break out of this range. But the positive sentiment from the tech sector could continue to drag the DJIA higher. So far this month, the chipmaker and chip equipment industry groups are up 13% and 17%, respectively. On Tuesday, both industry groups rose 1% each so this tells you what is driving this move up right now…
Now let’s look at some of the stocks we have been watching the last few weeks. RVBF had a down day on Monday but it rapidly had buying coming into and we have seen it come back to close at$0,12 which is very positive action. I dont think we will see a big explosion before XMAS but going into the new year this stock could be a monster for us, it’s already a +100% gainer in a week and something…from our initial alert at $0,06…
It was a fairly big day for BGEM. We have been watching it correct for the last couple of days and Tuesday we saw a big selloff with okay volume. The stock closed the day near its 20-day moving average, which might be some short-term support but now I want to see our reversal signs to make a quick trade. That would be the sign traders are ready to take this stock higher. Might be before XMAS or after….
We are also seeing a correction in EYSM. Although Tuesday was a down day for the stock, volume was the lowest it’s been in the last seven trading days. The Continuation Move on monday did not work then and now we are seeing profit taker exit, which is fine, we will need to have a better entry point to load up some more when the stock go at it again. In due time i will average down the small position i have now. As i explained before, i did load up monday before the break out and then lowered the position when i saw it would not go. This is usually how i trade potential Continuation Move to make sure i am not too exposed if a pullback start, like we are seeing now.
NOW 2 NEW STOCKS JUST TO ADD ON THE WATCHLIST FOR THE PROPER TIME TO ENTER :
The first stock is ANYT and it has rallied pretty strong in the last week but it looks like it could be running out of steam. It moved higher Tuesday but volume was on the low side. $0.09 could provide some resistance. I want to see some correction in the stock maybe it could drop back down to 0.05-$0,06 area which looks like a good support level and could be a good entry point but we will wait for the right time.
Another stock to watch is URGP, we also need to wait for the right time, but at least there is some activity on this one, so let’s wait for the right entry point.
Have a Great Trading Day !
Dear Fellow Traders,
Only three more shopping days until Christmas and but it looks like the celebrations have come a little early to the tech sector and the NASDAQ.
After trading in a tight range for a month the NASDAQ composite finally broke out to the upside. The range had been narrowing the last few days and I have been waiting for a move one way or another. Taking at look at QQQQ, the ETF of the NASDAQ composite, we are at the year’s high and up 73% from March Low. The break to the upside was done on average volume but it could be just the thing to spark some excitement and push the ETF to the 50 area…
On Monday there wasn’t as much excitement in the Dow Jones as there was in the NASDAQ. The DJIA remains firmly range-bound. Although it was a positive day for the market, the volume was slightly lower than in the past few days. We continue to see support around 10,200 and resistance at 10,550. Unless something major happens I don’t think we will break out of this range before the Christmas holidays, which officially start Thursday afternoon.
Looking at some of our stocks, our trade on RVBF is looking very well. Last Friday I entered the trade around $0,085 and it continues to look positive. Volume was good and the stock was moving in the right direction. We could probably take another run at $0,15 in the next few days.
BGEM is now in correction mode and we will need to wait for the proper reversal sign.
EYSM was a pick on monday, it did try to make a continuation move but faced too much resistance at $0,048-$0,049. I did lowered the size of my position when i saw this, but i still remain bullish and still have a position in this stock. Couple of things happened in a pattern like this, it will normally have one red day and then continue to the upside a little bit like BRYN did a few weeks ago or again it consolidate in this area and basically recharge for the next move.
And again as i always say you need to manage these trade properly.
Also i just wanted you guys to keep an eye on this stock that we started to trade in august at$0,09, as i had pointed at the time this stock can be a quick trade but also people will reap most of the benefits over a 6 to 12 months period in this stock, as the Rare Earth Bull Market unfold and this FLX stock (Traded on the TSXV) is holding very well and is reloading for more upside and definitely somebody is buying the weaker hands slowly…from what we can read on the chart…
Have a Great Trading Day !
