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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.