Wednesday Dec. 23 Premarket Analysis (Penny Stock Alert)
Today in the Stock Market
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 !
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