Thursday Feb. 11 Premarket Analysis
Today in the Stock Market
Dear Fellow Traders
Wednesday was relatively quiet compared to the 100 point swings we have seen in previous sessions. Markets players were probably still trying to dig themselves out after the major snowstorm that blew through the eastern states. The volume was slightly lower then the average and the Dow Jones Industrial Average only closed 20 points down from its open. The Dow struggled to make gains for most of the day managing to hit a high of 10,085 but testimony from Fed Chairman Ben Bernanke caused the index to hit a low of 9,962. However the bulls took over and managed to drive the price up above the 10,000 mark, closing at 10,038.
It was relatively the same picture for the tech sector. The NASDAQ Composite ended the day in negative territory but only by a few points. QQQQ, the ETF of the index, started the day at $43.10 and quickly dived into negative territory hitting a low of $42.75, which was Tuesday intra-day low as well. That price must have created a buy signal because investors jumped on board and managed to drive the ETF into positive territory, hitting a high of $43.31. The price fell back a little by the end of the day, closing at $43.02.
The U.S. dollar is coming down from its peak against the euro. Investors are starting to relax as European countries, led by Germany come up with a plan to help out their neighbors, like Greece, who are struggling with major debt problems. The weaker greenback helped prop up commodity price like gold. GLD, the gold ETF finished the day only one cent down from where it started. The ETF hit a low of $104.12 but investors are very quick to buy any weakness at this point. The ETF finished the day at $105.12.
Our latest pick, BHWX, performed very well for our members considering the present market and it appears to be ready to take off. Volume is growing and the price continues to climb. We are close to a resistance point so we need to monitor the pressure and see if it can breakout…. On Wednesday the stock was able to add to its two previous positive sessions. BHWX opened at $0.68 and managed to rally two cents, closing at the high of the day at $0.70. Looking at the historical price the stock tested this level in early January and early February. We have built a good base around $0.57, which is much higher than the January low of 0.42. Also the stock traded almost 1 million shares on Wednesday, which is a good sign that investors are interested in this stock.
Our second pick is not shining as bright as our first, but it is still making some gains and volume is very good. The stock traded 5.6 million shares on Wednesday. HZHI gapped almost half a cent at the open, which caused some selling pressure. Anytime a stock gaps to high, it hurts momentum because investors are quick to take profits on the inefficient pricing. On Wednesday the stock opened at $0.027 and hit a high of $0.034, which again was met by selling pressure. As you have certainly noticed, it is not trading as it should for us, I would have liked to see it continue higher with the momentum of yesterday.
I wrote yesterday in the newsletter I was excited about RVBF and KNDR and well I still am. RVBF traded very well on Wednesday. The stock opened at $0.085 and after hit a low of $0.0825 managed to rally and close at its high of $0.09. Volume is still relatively low but when it reaches $0.10 again it will generate a strong buy signal for many investors.
KNDR is the second stock I am excited about. However it just can’t seem to reach $0.08 but it takes a lot of patience to be a trader and you don’t want to rush into a trade no matter how much you think it is a sure thing. On Wednesday the stock opened at $0.051 and managed to rally to a high of $0.066 but settled back down to close at $0.056. The stock is building momentum and the longer it builds momentum the more explosive it will be when it breaks out of its current range.
Volume is still relatively low for MHYS, and as good looking as the chart was if volume doesn’t increase, the momentum just doesn’t kick-in. The stock was unable to hold Tuesday’s gains as it ended Wednesday in negative territory. The stock opened up at $0.1199 and sold-off for the entire day closing at its low of $0.10.
Finally, our gold pick continues to trade relatively flat as gold prices remain caught in a range. It closed the day pretty much where it started. AGCZ opened at $0.22 and hit a low $0.20. The stock managed to close just below its open at $0.219. Volume is very low on this stock so right now it is a boring trade.
Have a Great Trading Day!
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