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Dear Fellow Traders

***A quick reminder, markets are closed on Monday for President’s Day so enjoy the long weekend***

Investors appear to be coming to grips with Greece as the country continues to face major debt problems. The European Commission has promised “determined and coordinated action if needed” but has not pledged any concrete aid for the beleaguered country. This wait-and-see approach is registering with investors as the Dow Jones Industrial Average regains lost ground. The Dow is trading in a big range with support around 9,900 and resistance at 10,250. On Thursday the market opened at 10,037 and spent the morning in t the red but managed to climb back into positive territory and close at 10,144. We had 2 lower lows since the begining of the year starting this new downtrend, if we can reverse the trend by having a new high higher than the 10,320 area of February 2nd, we could start resuming this uptrend or at least stop the downtrend…. Also monitoring the volume here is key.

It was also a positive day for the tech sector, which managed to find strong support this week. QQQQ, the ETF of the NASDAQ Composite, found support on Tuesday and Wednesday at $42.75. On Thursday the stock dropped to that area hitting a low of $42.76 and then bounced back to close at $43.67. The rally helped to wipe away the losses from the major sell-off on Feb. 4. However the ETF appears to be consolidating in a wide range with resistance at $44.00 and support at $42.75.

Gold manage to jump off its support levels on Thursday despite a stronger U.S. dollar. The U.S. dollar hit a seven month high against the euro as concerns continue to surround Greece’s growing deficit. However this had little impact on commodities. GLD, the biggest gold ETF gapped higher at the open on Thursday opening at $105.58. Spent a little time in negative territory but managed to rally and hit its 20-day moving average around $107.56. The ETF closed the day at $107.13.

Although gold is starting to move higher, it is having little impact on one of our small cap mining stock, AGCZ. Volume has been lower as it hovers between $0.23 and $0.17. I think GLD would have to break resistance at $108 before we see interest return into the mining industry. This just a trade that is going to take time a lot of investors are waiting for gold prices to continue its rise before they jump on the band wagon again. Right now accumulating cheap shares is the best thing to do….

BHWX is holding its gains despite a dip into negative territory on Thursday. The stock gapped higher at the bell, opening at $0.72. Prices hit a low of $0.671 before climbing back to close at Wednesday’s closing price of $0.70. Now that the stock has broken resistance at $0.70 let see where this can go !!! A nice 26% up on this one.

RVBF is having trouble breaking resistance at $0.09. The stock opened at that price on Thursday and then spent the rest of the day in negative territory closing at $0.08. The 0.08 level has proven to be very strong resistance trading at that level for almost two weeks. I don’t want to read too much into this recent price action because volume is relatively low and that is going to cause some volatility.

MHYS is also clinging to its support levels and this is probably due to low volume as well. The stock managed to gap higher, opening at $0.115 and was able to hold on to most of its gains closing at $0.114.

Have a Great Trading Day!