Dear Fellow Traders
*** We have another explosive PICK this morning so make sure you are on our lists…
The market can not seem to hold on to any gains as the bears remain firmly in control of the price action. A surprise in fourth-quarter GDP could not even provide any support as the Dow Jones Industrial Average is close to breaking below a key psychological area. On Friday the DJIA closed down over 50 points to end the day at 10,067.33. This was the lowest close since Nov. 6. A break below 10,000 could lead to a test of the Nov 2 low of 9,647. The trading could be relatively quiet for the rest of the week as traders and investors wait for the employment numbers to be released on Friday. A strong employment report, coupled with strong fourth-quarter growth could help the market find some support at its current levels.
The overall market pessimism is also affecting the tech sector. The NASDAQ is unable to find any traction as it continues to lose ground. QQQQ, the ETF of the NASDAQ Composite broke through all its recent support areas and ended the week at its lowest level since Nov. 6. The ETF lost 76 cents on Friday to close at $42.79. I think it is realistic to expect the ETF will test the Nov. 2 low of $40.64 unless nov 27th pivot at 43 finally act as a support area.. . Even positive earnings are not helping to boost optimism in the market. Although we are only just halfway through the earning season a lot of market participants have priced in further weakness in 2010.
The U.S. dollar continues to dominate the commodity market and gold prices in particular. Last week GLD, the largest gold ETF, found some support above $106. And for the first since November it closed below that price. On Friday it ended the week at $105.96. The U.S dollar however finished the week at its highest level since July 30, 2009. As long as the greenback remains strong commodities will find it difficult to move higher.
Although gold prices are struggling, investors continue to see some value in junior gold stocks. For most of the week our gold pick, AGCZ has been under pressure but managed to recover some of its recent losses. On Friday the stock hit a low of $0.11 but that created a strong buying signal as the stock was pushed higher to close the week at $0.26. The volume was okay and other push higher could cause the stock to consolidate around $0.30 until gold prices find some support and with the news that went out over the week-end AGCZ could finally resume it’s move up.
Our latest pick BPAC is showing some sign of strength. Low volume on Friday has created some volatility in the stock. BPAC hit a low of $48 cents but managed to rally back and close up at $0.55, which is acting as a near-term resistance level. We are expecting a break of $0.55 which will probably cause the stock to test it’s recent highs of $0.66.
RVBF had a strong day on Thursday but was unable to hold those gains as investors were quick to take profits off the table. The stock started Friday at $0.13 but the selling pressure caused it to close at $0.08. I am expecting once again to see another consolidation period around this level. $0.08, $0.07 and $0.06 have acted as interesting support areas for this stock.
Some people have also asked for an update on KNDR. Not much is happening with this stock. Early last week the stock broke through its support at $0.06 and now it is trading in a range with support at $0.04 and resistance at $0.06. I think we need to see a very strong jump in volume for this stock to push higher.
The last stock I want to mention is HSCO, again this is an illiquid stock, which increases volatility, so traders should be careful and take smaller positions. The stock is making an interesting pattern. As soon as the price drops to its low buyers quickly jump in and drive the price back up. The price slowly trended down last week but I think we could see a relatively big move if the price moves back towards $0.70, which was the price that initiated a 60 cent rally in the stock Jan 20 and 21.
And as for BYSD…i will give it a second shot when i see the reversal confirmed, will let you know then but we need to see a few things before i fell it’s safe to reenter this one. Took a loss on the first trade, but it doesn’t mean it cannot be good for a second time….
Have a great Trading Day!
Dear Fellow Traders
Pessimism continues to rule the markets as the Dow Jones Industrial Average is unable to hold on to any major gains. According to some of the commentary a disappointing outlook in the tech sector caused today’s selloff. Also more negative news from Standard and Poor’s also did not help calm jitters about the world economy. In their latest report they said they no longer consider Britain’s banking sector the “most stable or low risk.” This comes just days after they put Japan’s debt rating on negative credit watch. The DJIA shed over 100 points and closed at its lowest point since mid-November. Investors and market players will be watching very closely to see if the 10,000 level will provide any support to this recent sel-off.
With a poor outlook for the tech sector it is not surprising that the NASDAQ closed at its lowest level in a month. QQQQ, the ETF of the NASDAQ composite, broke through its recent support level of $44. The ETF opened in negative territory and spent the rest of the day in the red. Even Wednesday’s special announcement from Apple (AAPL), showing off the new tablet device the Ipad, was not able to provide any near-term support. In fact Apple was one of the biggest losers on Thursday.
The U.S. dollar continues to hold on to most of its gains it made in the last two sessions, which is having a negative impact on the gold market. GLD, the most popular gold ETF remains caught in a tight range with resistance at $108 and support at $106. The ETF did break through that support in intra-day trading however it managed to close the day at $106.48.
Although there is not a lot of positive news in the market it is nice to be able to mention a bright spot, which for us was RVBF. This has been a difficult trade and it has taken a lot of patience but strong discipline is paying off. Yesterday I pointed out that I saw some pretty good strength and I was not disappointed. The stock gapped two cents at the open and managed to hit a high of $0.139 during the day. The stock pulled back a little but managed to close the session at $0.11. We have been waiting for volume to increase on RVBF and it came back like a hurricane. The stock traded almost six million shares. I think we could see another push to $0.15 but I definitely took some profits yesterday..
Speaking of patience, I think now is a good time to mention AGCZ. The stock continues to disappoint but that is not surprising. As long a gold prices remain under pressure this stock will not move higher. However once gold prices start to move higher we could see this price shoot higher very quickly. On Thursday the stock closed down at $0.179. I think we can expect to see this stock bounce around the $0.20 area in the near term. So I carefully work on building a lower average cost….
Our latest pick, BPAC, is showing signs of consolidation. The stock has been volatile the last few weeks so a period of consolidation is not surprising. The stock hit a low of $0.50 on Thursday but managed to bounce back and closed in slightly negative territory at $0.52.
The recent strength of the U.S. dollar is having an impact on commodity markets, which is affecting another stock we are watching. Our Canadian pick, FLX dropped sharply on Thursday losing five cents and closing the day at $0.205. However, I want to point out that we are in this stock for a long term (six to eight months). I wanted to point out what the stock is doing but I don’t want to read too much into this short term volatility. I will be watching any dips very carefully to look for any good buying opportunities. This is one of the important lessons a trader needs to learn to be able to properly manage their positions
I wanted to finish the letter with a sincere apology. Two of our recent picks have not turned out the way we thought they would. We were surprised by the recent move in BWIH and BYSD. We thought the recent news announcements on these stocks would have propelled their prices higher. But this is the stock market and even the best traders are wrong. The best thing to do is admit a mistake cut your losses and move on. It is not an easy lesson to learn but a trader gains nothing by dwelling on his or her mistake or trying to find someone to blame. It is important to always look for the next good trade and move on….
AS AN EXAMPLE..I have been talking about adding to RVBF for many days now…and yesterday we were up 73% from the $0,08 level…and we had many days where buying at $0,07-$0,08 was possible….
Have a Great Trading Day and a great week-end….
Dear Fellow Traders
Wednesday was a sprint to the finish as the market drove higher following the FOMC interest rate decision. The Dow Jones Jumped into positive territory and managed to close above the psychological level of 10,200. The Market finished the day at 10,236. As expected, the Fed left interest rates within its band between 0.25% and 0% and reiterated that they will hold rates at these levels for an “extended period.” The initial reaction to the announcement was negative as the Dow hit its lowest point of the day at 10,104.36. However after traders had time to fully digest the statement they changed their outlook and drove stocks higher. If the earnings data improves we could see some consolidation at the 10,200 level, which could eventually lead to a push higher.
The tech sector also benefited from a late afternoon rally to close in positive territory. QQQQ, the ETF of the NASDAQ Composite hit a intra-day low of $44 but received a boost in the afternoon after Apple released its new tablet device, the Ipad. After the run-up in prices, market players were able to drive the sector back down near the session lows. However, buyers were quick to step in driving prices higher. QQQQ ended the session at $44.70. The $44 area is proving to be some very strong support, which could be a sign that prices will move higher.
It was another volatile day for gold prices as the commodity continued to inversely track the U.S. dollar. GLD, the biggest gold ETF ended the day at $106.53, which is near the bottom of its current range. The ETF has been trading between S106 and $108 for the last four sessions. The FOMC meeting provided a late day boost for the U.S. dollar. Although rates were left unchanged the surprising event was that there was one dissenting vote against the decision. The fact that one member is thinking about hiking interest rates was enough to support the U.S. dollar in the short term.
Our latest stock pick, BPAC, was able to add to its gains. The stock hit a high of $0.55 and was able to hold on to most of those gains as it closed at $0.53. We see a lot of potential for this company, which creates biodegradable packaging products. They recently announced a partnership to distribute their product in eastern Canada. Our short-term price target is the Jan. 13 high of $0.68 but the company’s potential could drive the price even higher.
BYSD is showing some signs of recovery after Tuesday’s surprising selloff. After the movements we have seen in this stock, investors were a little hesitant to jump back in. The stock managed to close at $0.34, which was also where it opened up on Wednesday. Tuesday’s selloff was successful in shaking out all the weak hands in the market place, which could mean the stock is ready to explode higher in the short term.
BWIH ended the day in negative territory but I do not see Wednesday’s price action as weak. In intra-day trading the stock hit a low of $0.36 but buyers quickly stepped in and drove the price higher. The stock closed Wednesday at $0.53. Today’s price action was also accompanied by strong volume, which could point to another move higher in the near-term.
Our gold pick, AGCZ was not very active on Wednesday, which is not surprising considering where gold prices are at. The stock continues to consolidate near the bottom of its range. The stock started Wednesday at $0.269 and closed at $0.26.
There appears to be some renewed activity on RVBF. The stock has been consolidating around $0.07 for the last week and has not been able to close above $0.08 until Wednesday. The stock opened at $0.071 and managed to close at its high of $0.08. What is interesting is that the move higher was acompanied with strong volume. This could be the start of another push higher. THIS IS LOOKING VERY BULLISH TO ME…
HSCO is also consolidating but showing signs of strength, despite a negative close. This is still a very illiquid stock and can be very volatile. On Wednesday the stock hit a low of $1.03, which caused a strong buy signal as investors drove the stock up to close at 1.16. Again there was relatively strong volume on the move, which is a good sign that prices could move higher very quickly.
Have a Great Trading Day.
Dear Fellow Traders
*** We have an HGS Reversal Setup Pick today, make sure you are opted-in our our list to get it on time……
On Tuesday the Dow Jones Industrial Average managed to spend most of the day in positive territory. However a late sell-off in the afternoon caused it to close just one point below its open. In intra-day trading the DJIA hit a high of 10,285 but dropped 90 points to close at 10,194.29. According to some commentary the 10,200 area is an important psychological barrier and was a good support area in December. It is not surprising the market wasn’t able to hold any gains. Wednesday is a big day on the economic front with the FOMC interest rate decision and the U.S. President’s State of the Union address, and a lot of traders and investors are probably standing on the sidelines waiting for the dust to clear.
The tech sector faired marginally better than the overall market. Strong earnings from Apple Tuesday night probably helped QQQQ, the ETF of the NASDAQ composite find support at the $44 area. The ETF managed to hit a high of $44.89 before falling back to close in positive territory at $44.35. Again a lot of market players will wait until Apple’s big announcement Wednesday. The company is expected to show it’s new tablet computer, which has been much anticipated for weeks if not months.
A weaker U.S. dollar helped push gold higher Tuesday. The precious metal is well off it’s lows but still trading under the key resistance level of $1,100. GLD, the most popular gold ETF, touched the $108 level but was unable to hold the gains and finished the day at $107.56. Wednesday’s FOMC decision will spur speculation about the U.S. dollar and could give it the boost it needs to break its resistance level.
With gold prices continue to trade it a tight range it is not surprising we are not seeing a lot of movement in AGCZ. However investors still see value in this stock. On Tuesday AGCZ dropped to a low of $0.20 but buyers quickly stepped in at that price and drove it back to finish the day at $0.28. On Tuesday Standard and Poor’s put Japan’s sovereign debt on credit watch, which could be the first step towards a downgrade. With more countries having problems it is only a matter of time before investors turn to gold for security. As gold prices move higher the biggest winners will be the small-cap gold companies.
We still have a strong buy signal for BWIH, despite Tuesday’s sell-off. There was very low volume on the stock, which could have been enough drive the stock lower. The reason why I see potential for the BWIH is because after hitting a low of $0.52, buyers stepped in and pushed it 10 cents higher to close at $0.62. If traders practice managing their positions they will be better able to take advantage of and profit from these price swings.
It was not a good day for BYSD further declines in oil prices probably helped to push this stock down. The sell-off was surprising because company released positive news on Monday. I think some players were successful in driving the stock lower so they would be able to pick it up at a better price before it shoots higher. BYSD found good support at $0.30 and could be a good entry point for those who have been waiting for a pullback to get in on this trade. BASED ON THE FACT that this stock is only really starting trading, i can see a good support level around $0,30 and took the opportunity to average down my position, which i rarely do, but i think this specific stock has enough thing going for me to add to my initial position.
Our Canadian pick, FLX continues to consolidate but we are in this trade for the long term and will continue to hold it. The fundamentals look strong as U.S. dollar weakness will push commodity prices higher and the RARE EARTH play is really just starting to be understood by the sophisticated investors let alone the public….
Have a Great Trading Day!
Dear Fellow Traders
It is not surprising to see the Dow Jones Industrial Average consolidate after the massive sell-offs Thursday and Friday. There was some volatility during the day as market participants digested the news that the Senate will re-appoint Ben Bernanke as the Chairman of the FOMC. The re-appointment will provide some stability while the Fed continues its historical efforts to stem the affects of the recent financial crisis. On Monday the DJIA climbed to a high of 10,256.87 but could not hold on to those gains and closed the day at 10,196.86, which is just below a resistance area at 10,200. Tuesday could also be relatively quiet as the FOMC starts their two day interest rate meeting. Investors and traders could be laying low to find out what the Fed’s decision will be on Wednesday.
The tech sector appears to be finding some support despite a lower close for the fourth straight session. It was also a relatively quiet day as investors awaited earnings from Apple (AAPL), which were released after the bell Monday evening. QQQQ, the EFT of the NASDAQ composite, managed to bounce off Friday’s low of $44 and opened at $44.39. Although it ended the day slightly lower it was able to hold on to most of its gains from the gap at the open. The ETF closed Monday at 44.31. The headline numbers from Apple might help to push the tech sector high in today’s trading but the news is relatively mixed. Although the company beat earnings, they mentioned in their report that Ipod sales were down during the holidays. However the big event will be on Wednesday as Apple is expected to showoff its new tablet computer. There are a lot of high expectations for this product.
It was also a relatively boring day for gold prices. A sagging dollar helped to prop up the yellow metal. GLD, the biggest gold ETF finished Monday pretty much where it started, opening at $107.44 and closing at $107.48. The ETF did fall to a low of 107.07 but that created a buy signal for some investors waiting to pick up gold on any dips. I think it will be relatively quiet for the gold market as the Fed starts their two-day interest meeting on Tuesday.
With gold hanging around its support levels it is not surprising our gold pick, AGCZ is not doing much. It continues to hold most of its recent gains and closed the day at $0.309, which is pretty much where it started the day.
Our latest pick, BWIH is showing signs of strength. We recommended this stock to our members ahead of Monday’s open. The stock dropped to a low of $0.43 but investors jumped in and pushed the price back and it closed at $0.65. Volume has been decent the last few sessions and it could signal another push higher in the next few days.
BYSD is moving higher. It opened up the day at $0.40 and closed at $0.45.
BYSD is confimring a nice reversal right here, they had a very good PR last night, expect this trade to make us a lot of $$$ today…
The stock is probably benefiting from recovering oil prices. Like most commodities, oil sold off sharply following last week’s announcement from U.S. President Barack Obama. On Monday oil prices gained 86 cents to close at $73.69 a barrel.
RVBF continues to consolidate around $0.07. The stocked opened on Monday at $0.0701 and closed at $0.077. Volume has been steadily decreasing and it will need to increase to signal a run higher in the short term.
Our long term pick, Canadian company, FLX is performing very well with very good volume. The stock opened at $0.28 and managed to close at $0.285. This is a rare earth company so it is important to monitor commodity markets, when commodity prices start to recover we should see this stock shoot higher.
Have a Great Trading Day.
Dear Fellow Traders,
For the second time in as many days the Dow Jones Industrial Average dropped over 200 points. Market participants are still trying to digest the proposed changes to the banking industry, which was announced by U.S. President Barack Obama Thursday morning. Investors and traders are worried that the changes in how much risk banks can take will limit their ability to make money and could put any financial recovery in jeopardy. On Friday the DJIA broke through all recent major support levels and closed at three month low. The market ended the week at 10,172.98. 10,000 could be a psychological support level in the short term but we can’t rule out a test of the November low of 9,647.06. The earnings season, which has been mixed at best so far, has not provided any support for prices but it is still early so any good news might help revive sagging optimism.
It was not a pretty picture for the tech sector. The NASDAQ also sold off sharply for the third straight session. QQQQ, the ETF of the NASDAQ composite lost $1.33 on Friday to end the day at $44.16. Friday was the worst of the three-day sell-off. However the news isn’t all that bad. The ETF did find some support at $44. I don’t know how strong this level is the November lows around $43 might be a strong support level and one we might eventually test.
LET ME BRING YOU SOME POSITIVE : There is always a Bull Market somewhere in the Penny Stock World. We only need to find them…and i will make sure i help you with that.
***********
It was also not a good day for gold price. The concerns over the banking sector are also creating some pessimism in the commodities market. If the banks have to limit the amount of risk they can take, they might not be able to speculate as much in commodities like gold and oil. However I do not think the gold rush is over. We knew it was going to be a choppy ride but this volatility creates opportunities for investors and that is what we are seeing. On Friday, GLD, the biggest gold ETF, hit a low of $106.01 and bounced to a high of $107.68 and closed in positive territory at $107.17. Anytime gold prices dip we will see some strong buying. However savvy investors are not going to jump in too soon. They are going to wait for rock bottom prices. I think we might expect a dip towards the November lows of $100.65.
Look at this longer term chart and you can see we are at a critical point on the uptrend for GLD, we could poke this area and come back up while not affecting the uptrend…
**On a side note about gold, I want to mention that the Fed will announce its interest rate decision on Wednesday. It is high unlikely they will make any changes but it should cause some discussions about the U.S. dollar. Any weakness in the U.S. dollar will be positive for gold prices.**
The first stock I want to mention is our gold pick AGCZ. The stock had a relatively quiet day on Friday and ended the week at $0.305. I just want to point out that the stock continues to perform better than the gold market. I think we could see some consolidation at around this level as investors prepare for another big run in gold prices.
BWIH is our MONDAY PICK and you can see that it has a nice explosive chart. Monday and the next few days should make this stock a very good trade for us.
RVBF’s positive close on Friday could attract more buyers. Last week the stock has held support at $0.07 and could be ready for another move higher after ended the week at 0.079. On Friday in intra-day trading the stock hit a low of $0.061, which appeared to be a strong buy signal for many investors and traders. I continue to watch this stock closely because it is only a matter of time before it goes back to $0.15 and perhaps finally breakout…
BYSD remains a stock with a lot of potential. Friday was an extremely volatile day for the stock. Intra-day the price broke below the 20-day moving average of $0.30, which caused a flood of buying. The stock ended the day near the top of the Bar. It pulled back from the earlier move of friday 2 weeks ago. But now it looks poised to go revisit $0,60 and more.
HSCO, although thinly traded, is showing very good signs of strength. This stock also touched its 20-day moving average, of $1.15 which was a strong buy signal. The stock ended the week at $1.26.
Another stock with lower liquidity I am watching is GETG. On Friday it closed above a strong resistance point of $0.40. it was also the highest close in a month. If volume improves on this stock we could see it run to at least $0.50 or even $0.60 very quickly. I like the fact volume increased on friday. Ideally would be a big push with big volume increase…
The last stock I want to mention is FLX, a Canadian stock on the TSX Venture list. There is a lot of potential with this company and we are expecting it to be a longer term investment (6 to 8 months). The stock appears to be consolidating a bit, which is not surprising. It had some major moves on Wednesday and Thursday. FLX is holding most of its gains and ended the week at $0.27, which we think is a very good buying opportunity.
Have a Great Trading Day!
