Wednesday Feb. 10 Premarket Analysis
Today in the Stock Market
Dear Fellow Traders
Some bulls appeared to be bargain hunting on Tuesday and were able to drive the Dow Jones Industrial Average above 10,000. On Monday the market took a beating and closed at its lowest level since November 2009. However those gains were erased after the market managed to rally 150 points on Tuesday. There appears to be some growing optimism after newspapers reported that Greece might get some help dealing with its debt from other European countries. The DJIA started the day at 9,910 but the market never looked back and hit a high of 10,137. The momentum slowed modestly near the end of the day and the index closed at 10,058.
The NASDAQ Composite was also able to add some gains on the day and recover from Monday’s major sell-off. However the tech sector did not fair as well as the general market. It was a choppy day for QQQQ, the ETF which tracks the NASDAQ. The ETF gapped higher at the bell, opening at $43.17 but dipped into negative territory in the morning. It managed to find some support at $42.76 and the bulls were able to drive it up to a high of $43.51. However the rally could be sustained and the ETF managed to close slightly lower than its open, finishing the day at $43.11.
The positive news from Europe helped settle down the U.S. dollar Tuesday morning, which helped to prop up gold prices. The U.S. dollar has been trading near eight-month highs against the Euro, which has had a major affect on commodity prices. GLD, the biggest gold ETF, gapped higher, opening at $105.18 and managed to hold its gains for the entire day. The precious metal ETF hit a high of $106.15 before falling back down and closing at $105.41.
It has been an interesting day in the market place and there are two stocks I am very excited about. We have been watching them for a while, it looks like they could be ready to move very quickly. The first stock is KNDR. The stock ended the day in negative territory but continues to hold on to most of its gains from the past two days. On Tuesday the stock opened at $0.06 and hit a high of $0.065. Looking at the chart it looks like one big trade was able to drive the price down from that high and the stock was unable to recover, closing the day at $0.051. The reason why I am getting excited about the stock is the fact that interest is starting to grow and we are seeing volume start to build. Technically a break over 0.075 will confirm that we cleared resistance but as i explained in an email to the Platinum and Gold members, now is the time to do some bottom fishing….
The second stock I have been watching for a while is RVBF. The stock has been holding support at $0.08, which is a good sign. On Tuesday the stock opened up at $0.08 and managed to hit a high of $0.09. RVBF settled back down and closed right at its 20-day moving average at $0.085. I want to see a break of $0.10 on high volume that will signal a move back to at least the recent high of $0.134.
Our latest pick HZHI is holding support around $0.02. Tuesday was an interesting day for this stock. It ran into some resistance near its 20-day moving average of $0.031. If this stock continues to hold support I think we will see another push higher in the short term. But it’s getting close to support….
Our other pick, BHWX is performing very well. The stock gapped higher on Tuesday and although it ended below its close it managed to hold most of the gains from the open. The stock opened at $0.67 and managed to rally to a high of $0.68 before ended the day at $0.65. It is not surprising the stock fell after the open. On Monday the stock closed at $0.62 so a five cent gap is a good reason for some investors to take some of their profits off the table.
It was also a volatile day for BPAC. I think we are seeing some profit taking in this stock as well. On Tuesday it opened at $0.605 and hit a high of $0.63 before falling back and hitting a low of $0.57. BPAC managed to end the day slightly higher closing at $0.575. The stock had a major rally the previous two sessions, starting at a low of $0.50 and driving it all the way to Tuesday’s high of $0.63.
Our gold pick, AGCZ, is holding on to some of its gains but this stock is now plagued with very low volume. The stock started the day at $0.1802 and managed to finish at yesterday’s closing price of $0.225.
In Tuesday’s newsletter we added a new stock to our watch list, MHYS. We were looking for a higher high, which we got. However we would like to see volume pick up to confirm the reversal. The low volume is causing some volatility. On Tuesday the stock opened at $0.1189 hit a low of $0.10 and hit a high of $0.124. The stock ended the day just below its high, closing at $0.12.
Finally I wanted to end today’s newsletter with an update on our longer term pick, FLX. We are holding this Canadian stock for at least 6 months. For the past seven sessions the stock has been moving lower consolidating after a rally starting in mid-January. The stock is on the rise again. On Tuesday it opened at $0.22 and closed the day at $0.25. If you were able to manage your positions efficiently hopefully you were able to take advantage of the lower prices in the previous sessions.
Have a Great Trading Day.
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