Tuesday Jan. 26 Premarket Analysis
Today in the Stock Market
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.
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