Tuesday Feb. 9 Premarket Analysis
Today in the Stock Market
Dear Fellow Traders
Positive comments over the weekend from Secretary Treasurer Tim Geithner did not help the market as the Dow Jones lost more ground Monday. Over the weekend Geithner said in an interview with ABC that the U.S. will never lose its AAA rating. Investors are taking these comments with a grain of salt as countries around the world are faced with major debt problems. The DJIA shed more than 100 points on Monday as investors search for safer investments. The Dow opened up at 10,005, spent most of the day in negative territory and closed at 9,908. Now that the Dow has closed below the 10,000 area the first major line of support I see is 9,500. There could be some minor support at 9,750 but if fear remains in the market place that level might not be very strong.
The tech sector also shed points but appears to be fairing better than the general market. QQQQ, the ETF of the NASDAQ Composite, continues to hold support just above $42.50. The ETF started Monday at $42.92 and could not hold any gains as it closed at $42.67. In intra-day trading on Friday the ETF hit a low of $42.12 so I have some doubts that the support we are seeing will last in the medium term. We are definitely in a market correction and there are no ways to determine how long it will last. By studying the market everyday we will know when the market is turning…
After Friday’s extremely volatile day for commodities, gold prices appear to be finding some support. There is still a lot of talk about gold hitting $1,000 and at this point it wouldn’t take much to bring it to that level. However any drop would quickly evaporate as investors pick up gold at what some see as an extreme discount. GLD, the biggest gold ETF, finished the day modestly lower from where it started. The ETF opened at $104.41 and managed to hit a high of $105.14 before selling off and closing at $104.04.
It was an exciting day for BHWX. After a month of consolidation the stock has built a fairly strong base and the technical patterns point to further gains in this stock. BHWX opened at $0.57 and never looked back. The stock hit a high of $0.66 and before settling down and closing at $0.62. The move higher was also made on strong volume, which is a good sign of growing momentum.
Our second pick on Monday, HZHI, didn’t do as well as our first, but it still looks promising. HZHI gapped higher at the opened, which caused some buying momentum. The stock opened at $0.027 and managed to rally to a high of $0.037. However the momentum couldn’t be sustained and the stock closed at day at its opening price. I am glad the stock fell back today because I would rather see a sustained rally in this stock then just one quick move higher. But it is a good sign that investors are interested in buying this stock. More than 1 million shares were traded on Monday, which is exactly what I want to see.
BPAC picked up significant momentum on Monday, breaking through resistance at $0.57. The move was made on extremely strong volume. The stock gapped higher at the open, starting the day at $0.57. It managed to rally to a high of $0.61 before falling modestly lower to close at $0.586. For any of you who bought some when we came with this pick a few weeks ago at $0,52, make sure you manage your trade properly and do not let it back under your entry price.
Our gold pick, AGCZ, continues to regain lost ground. The stock opened up at $0.185 and closed at $0.225. The fact that gold prices appear to be finding some support is a good could help to boost this stock higher. Volume is relatively low at the moment, which means it will be difficult to forecast any short-term moves.
Finally, we continue to monitor KNDR as it moves closer to resistance levels. On Friday the stock rallied 2 cents and on Monday it added to those gains. KNDR opened at $0.055 and closed at $0.06. A move above this level will test the first resistance point but ultimately I am looking for a break of $0.08.
Also as i scan for stocks on a daily basis, i found this other stock to add to the watchlist, MHYS was very active at the begining of the year, now it has pulled back for about 9 days and yesterday was the first sign of green with a tight bar day. This could be a good entry point if we get a new higher high with strong volume….
Have a Great Trading Day!
2 Responses to “Tuesday Feb. 9 Premarket Analysis”
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hi what happened to optl is it a viable trade?
do you see an entry point any time soon it is at .014 any recommendations ? i did read the information it apperes to be on an upward trend