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Dear Fellow Traders

The bulls appear to be making more gains as the Dow Jones Industrial Average ends another day in positive territory. Optimistic comments from the Fed provided some incentives for buyers. The FOMC minutes, released Wednesday afternoon, revealed that the Fed expects the U.S. economy to grow by 3.2% this year, which is revised up from 3%. Looking at the chart of the Dow it is not hard to feel a little bit optimistic. The DJIA has closed in positive territory in five out of the last six sessions. The DJIA opened at 10,261 and spent the entire day in positive territory closing at 10,309, which was just 11 points down from its intra-day high. The index could hit some resistance in the next few days. 10,318 represent a 50% retracement between the high on Jan. 21 and the low made on Feb. 8. A break of this level could help us confirm we are back into an uptrend as i mentioned many times.

It was another positive day for the tech sector. QQQQ, the ETF of the NASDAQ Composite continues to break through resistance levels. On Wednesday, for the second day, the ETF gapped higher at the open. There was some selling pressure at the start of the day but the general market rally provided some momentum for the tech index. The ETF opened the day at $44.50 and hit a low of $44.26. However the ETF managed to close at its high of $44.57.  As for the Dow, the fact the QQQQ crossed 44 to the upside will help us resume the uptrend. It doesn’t mean we will keep going up in a straight fashion. But once we get a reversal from this present move up, we should get a higher low and that’s when we get the real buy signal to go.

Gold prices continue to hold on to its gains despite a closing in negative territory. On Tuesday GLD, the biggest gold ETF had a wide gap at the open driving the price above $109. On Wednesday the ETF was able to add to those gains opening at $109.66 and hitting an intra-day high of 110.01. This must have created a sell signal as investors drove the price to a low of 108.87. At the end of the day the ETF settled at 109.25.

It was another exciting day for our latest pick, WDRP. Once again the stock gapped higher in the morning opening at $0.285. However that price represented more than a 200% gain from Friday’s close. That is a target not many investors would pass up in only two days. The selling pressure caused the stock to trade most of the day in negative territory. It still managed to hold on to the massive gains made on Tuesday, hitting a low of $0.18. The stock was able to rally from its low closing at $0.02. Volume is still incredibly high more than 40 million shares were traded on Wednesday. This strong activity will help to attract investors and could help support its current price. And make sure you manage your trade properly..REMEMBER : Bull Makes Money, Bear Makes Money and PIGS get slaughtered !!!

Our previous pick, BHWX is having some trouble finding some traction as it spends another day in negative territory. The stock opened at $0.61 and closed at $0.561. The closing price is right at its 20-day moving average, which could be an interesting buy signal. It is encouraging that volume remains strong. More than 300,000 shares were traded on Wednesday. Even though i took my profits on this one, i keep monitoring it to see if we can have another entry when it revisit support and perhaps we can get another 20-25% profits on it…and get the real break-out.

Finally, we continue to watch and wait for another major push for KNDR, volume has weakened slightly the last few days but continues to build a base at $0.05. On Wednesday the stock opened at $0.06 and dropped to its support level and bounced back to close at its opening price.

Also stay tuned we should have another Great Pick for Friday or Monday !

Have a Great Trading Day!