Friday Feb. 5 Premark Analysis
Today in the Stock Market
Dear Fellow Traders
The market is very sensitive to employment data ahead of Friday’s nonfarm payrolls report. The Dow Jones Industrial Average the entire day in the red, after the U.S. Labor department announced an increase in weekly U.S. Jobless claims, and closed at its lowest level since Nov. 6. The weekly employment data was enough to spook investors causing the Dow to break through all of its recent support levels. The market did find some support at 9,998 and only managed close slightly above that level at 10,002. With the market finding some support at the psychological area of 10,000, a strong employment report could cause a shift in optimism and help propel the prices higher. BUT RIGHT NOW IT LOOKS LIKE GOING DOWN….Down move like this in massive volume…not good…
The market sell-off even impacted the tech sector, which also closed at its lowest level since November. QQQQ, the ETF of the NASDAQ Composite, lost almost 3% on Thursday. It opened up at $43.58 and closed at its lowest point in the day at $42.62. Not even positive earnings from Cisco Systems (CSCO) were enough to support the tech market. On Jan. 29 QQQQ hit a low of $42.63 and was able to bounce slightly higher. With Thursday’s close only slightly lower, the market might be able to find some traction, especially if the employment numbers are positive. The next support level I am looking at is $42.50.
Fear and pessimism ruled the market on Thursday, which means investors were jumping into the U.S. dollar which is considered the ultimate safe haven. The U.S. dollar hit a seven-month high against the Euro. Unfortunately the stronger dollar was disastrous for commodities and in particular gold. GLD, the biggest gold ETF, lost almost 4% on Thursday and closed at its lowest level since Nov. 2. The ETF gave up all of its gains from the previous sessions opening up at $106.79 and spending the entire day in negative territory finally closing at $104.37.
With gold taking such a beating it is no surprise that our gold pick, AGCZ also spent the day in negative territory. The small cap mining stock opened up at $0.235 and hit a low of $0.18 before finding support. AGCZ ended the day at $0.20. This area is proving to be a strong support point. As we can see in the last few weeks the stock as hit this price five times. If gold prices can stabilize and AGCZ is able to hold this price area then it could attract some buying interest.
RVBF is once again consolidating around the $0.08 area. It touched that price in intra-day trading on Thursday. We are seeing volume start to tick lower again. This stock does have good potential, we just have to be patient and pick our buying opportunities. We had to wait almost two weeks for our last big push in this stock.
It was another volatile day for BPAC but that is not surprising considering the low volume we are seeing in this stock. On Thursday it traded just over 100,000 shares, which is well below the daily average. Because of this I don’t want to read too much into this stock. This is part of the consolidation period and the longer investors remain scarred the longer this stock will bounce in a range between $0.55 and $0.50. The stock did close below its 20-day moving average for the first time in eight sessions. Another touch at $0.50 could trigger a buy signal for some investors.
With the U.S. dollar moving higher and commodity prices moving lower, it is no surprise that our oil pick lost major ground Thursday. BGOI opened the day 0.04 and closed the day at 0.0262. What is also hurting the stock is the fact that oil reserves continue to grow. What is encouraging is that BGOI could be finding some support at this current area. It touched $0.026 on Jan. 25 and managed to rally to a peek of $0.07 a few days latter. BUT I AM relatively disgusted by the massive selling that came into this stock yesterday….if the selling stop it could bounce, but breaking some key support level it most probably triggered some stop loss….and this was like adding fuel to the fire…
In times like this where the market is severely under pressure, being patient is the best thing to do if you do not short or buy puts.
Have a Great Trading Day and a Great Week-end !
One Response to “Friday Feb. 5 Premark Analysis”
Feel free to leave a comment...
and oh, if you want a pic to show with your comment, go get a gravatar!
[...] here: Friday Feb. 5 Premark Analysis – Hyper Growth Stock | The Most … Share and [...]