Friday Feb. 19 Premarket Analysis
Today in the Stock Market
Dear Fellow Traders
The Dow convincingly pushed higher and breaking throught the pivot of Feb 2nd, which is great news for the market. The index continues to break through any significant resistance points as it made gains of almost 100 points in Wednesday’s trading. The Dow opened at 10,309 and closed at a high of 10,392, which was only 14 points down from its intra-day high of 10,406. Although it was another strong day for bulls, they could run into a stumbling block in today’s trading action. Following the close on Thursday the Fed announced a surprise hike in the discount interest rate. This is the interest rate banks pay for emergency loans from the Federal Reserve. Although the hike was announced after the market closed it had an impact on the futures market. Dow future contracts dropped following the announcement. This could lead to significant selling pressure at the open. And yes we could get a pullback here but i will look at the next low to be higher than the one we had recently around 9800.
The tech sector continues to move higher for its fifth straight session. QQQQ, the ETF for the NASDAQ Composite. Opened the day at $44.54 and spent a brief period in negative territory, hitting an intra-day low of $44.45. However investors jumped back into the market driving the price to a high of $44.93 and finally settled at $44.85. Although the ETF continues to move higher, volume is starting to drop. This might be a sign that buyers are not as aggressive. I am not expecting a lot of gains in the next few sessions. I think investors will be looking for any excuse to take their profits. I think $45.00 could represent the first sign of major resistance for QQQQ.
Gold prices closed the day just under a significant resistance point. The U.S. dollar remains under pressure, which is helping to support commodities like gold. GLD, the biggest gold ETF, started the trading day at 109.61 and for the second day broke through $110, hitting a high of $110.11. However those gains could not be sustained as the market closed at $109.98. A close above $110 could trigger a strong buy signal for investors and confirm a reversal of the recent down trend. The recent action from the Fed could help support the U.S. dollar and put pressure on gold prices. However some comments I have heard is that the market has already priced in this incremental move so any gains in the greenback are expected to be short term moves.
It was a down day for WDRP but that is no surprise after the strong selling pressure we saw on Wednesday. I think the action we saw was in part from continued profit taking as well as weaker investors being shaken out after missing the opportunity of major gains on Tuesday. The stock opened at $0.0188 and managed to hit a high of $0.02 before selling off sharply. The stock hit a low of $0.0135 before settling slightly higher at $0.014. Thursday’s closing price was also the low point on Tuesday, which sparked the major rally.
On February 8 we provided some charts of stocks we are watching. I wanted to take a moment to give you an update on some of those stocks. The first is GETA, we continue to watch this stock but I want to see more movement with stronger volume. Although more than 3 million shares were trade on Thursday this is only slightly above its average volume. The price is having some trouble breaking through resistance at $0.135. That is where the stocked opened at on Thursday and closed in negative territory at $0.117. For this listed Penny Stocks, i would like to see a dramatic volume surge with movement, to get a quick trade…
BNXR has made some interesting moves. We did not cover it here but the base around $0,20-$0,22 was a good entry for a quick trade. Some time we will give you stocks that you need to add to your watchlist and these are potentially going to trigger short term but you are on your own to decide when to get in. BNXR is one of them.
Have a Great Trading Day!
One Response to “Friday Feb. 19 Premarket Analysis”
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Hi Francis,
Your daily messages are very informative for US stocks. Do you have any data for Philippine or Asian stocks? Or do you know of any group that does the same things as Hypergrowth Stock in Asia? Thank you for the valuable information you give everyday.