Wednesday Jan. 27 Premarket Analysis
Today in the Stock Market
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!
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