Tuesday Dec. 29 Premarket Analysis (Penny Stock Alert)
Today in the Stock Market
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.
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