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Pre-Market Analysis for Friday, July 30

Frankytrader — Thu, 29 Jul 2010 22:24:47 +0000

The Dow Jones Industrial Average ended Thursday in neutral territory after testing the boundaries of its current channel. Positive earnings in the morning helped push the index to test resistance just below 10,600. But as we’ve pointed out, the bulls just don’t have enough momentum to push prices higher. The bears took over in the early afternoon and pushed the index to a low of 10,387, which is inside our support range. We are expecting this tug of war to continue in the near-term as investor confidence continues to build.

The tech sector closed in negative territory for its third straight session on Thursday. But looking at the price action in QQQQ, we remain confident that $45.50 will hold as support in the near-term. Strong buying in the morning caused the ETF to gap modestly higher but investors quickly took their profits and the selling pressure drove the price to a low of $45.25. At that point the bulls jumped back into the marketplace and drove the price up to close at $45.71.

Investors continue to take advantage of low prices in the gold market and created a decent uptrend in GLD in Thursday’s session. The only concern we have at this time is that volume is relatively low. We would like to see GLD break above resistance at $114.50 on strong volume. That will help to solidify the ETF’s recent trend. GLD ended the day at $114.29, just six cents from its sessions high.

After hitting a strong support point on Wednesday, investors jumped back into the oil market. Strong buying in the morning caused USO to gap modestly higher and it spent the rest of the day in positive territory. The ETF managed to close above resistance at $35.00 but the real test is at $36.00, which we think will continue to cap any rally in the near-term.

TDGI is starting to make some decent gains and with volume continuing to build, we think the price has enough momentum to move higher in the near-term. We started talking about this stock on Tuesday and recommended investors buy when volume picked up and the price broke above $0.0425. We received the buy signal late Wednesday afternoon as the price closed at its high of $0.048. The rally continued Thursday morning when the price hit a high of $0.0525, which is also where it ended the day. A break above this level could lead to a test of $0.06.

Thursday morning we added ALTI to our watch-list and said we wanted to see some more buying at the open. Because of low volume, the price was volatile on Thursday. We want to wait for a clear sign that the price will move higher, which is why we are waiting for a break above $0.40 with high volume.

The buying pressure in COIN picked up in the last two hours of trading on Thursday, which is why we are keeping this stock on our watch-list for now. The price is having trouble breaking above resistance at $0.65. A positive open on strong volume could be enough to make this minor resistance level. On the sell side, there is strong support at $0.60 so for now we will just watch the price action and see which direction it takes.

ABK spent another day in negative territory, which is not surprising. The stock made some major gains this week and investors are now only interested in taking their profits. This price could easily fall back down to $0.80 before we see any major support.

We are also watching WAMUQ to see when the latest selling pressure will come to an end. $0.17 did not hold as support as the price opened lower on Thursday. WAMUQ hit a low of $0.1565 before investors jumped back into the market. We think there are more risks to the downside at the moment so we are just going to watch the price action.

We are starting to see momentum pick up for LBSR. As we can see from the price action in early July, this stock has a lot of potential. However, we need to see stronger volume if the price is going to break short-term resistance at $0.0225.

MBHI could be an interesting trade when volume starts to increase. The price has been trading in a range for the last month, with support around $0.013 and resistance around $0.0175. If the price can break resistance with good volume then we should see some gains very quickly. It doesn’t pay to jump into the stock right now because we have not seen any strong indication of where the price will go in the medium-term.

PARD is suffering from low volume and that is helping to drag the prices down. As we pointed out earlier, we have a stop-loss at $0.55. From our initial entry point at $0.61 that is a loss of 9.8%. We will wait until the stock hits that price and triggers a buy signal.

ADLS had a decent open on Thursday. The stock gapped in the morning and opened at $0.56. However investors were quick to take profits and that selling pressure caused that gap to close by the early afternoon. We are expecting to see some more selling pressure today as more investors close their positions.

Have a Great Trading Day!

Your Hyper Growth Stock Team

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Pre-Market Analysis for Thursday, July 29

Frankytrader — Wed, 28 Jul 2010 22:30:59 +0000

The market experienced some modest selling pressure on Wednesday and the Dow Jones Industrial Average was unable to move higher. We expect to see this sideways trading continue for the near-term. Because of the relatively low volume, the index won’t be able to generate enough momentum to break above 10,600. At the same time, we’re not expecting to see any sharp sell-off because second-quarter earnings have been mostly positive – helping to build investor confidence. In the short-term, we think 10,400 will act as support and 10,600 will continue to act as resistance.

For the second straight session the tech sector underperformed the general market. QQQQ, the ETF of the NASDAQ composite dropped 0.67% on Wednesday and is testing its first major support point at $46.00. A break below this price would lead to a test of stronger support around $45.50. Similar to the general market, we are expecting to see some consolidation in the short-term, with resistance at $46.50 and support at $45.50.

The drop in gold prices was just too attractive for some investors to pass up. GLD tested strong support at $113.00 on Wednesday morning but that triggered a buy signal and investors were able to drive the ETF to close at $113.48.

USO, a popular oil ETF, tested support at $34.00 on Wednesday and we are expecting this area to hold in the near term. As optimism grows, investors will jump back into the oil market and push the ETF higher. Although it remains volatile for the short-term, we are expecting USO to develop a significant medium to long-term uptrend.

ADLS finally shaped up the way we were expecting it too. The move on Monday created a buy signal when the price broke above $0.045. On Tuesday, we saw some profit-taking on very low volume but that provided investors with another chance to load up on the stock. As soon as volume returned, the price climbed higher.

That strong momentum led to a big move Wednesday. From the open, investors jumped on ADLS. In the morning it rallied to a high of $0.069 which then triggered our sell signal. That is a gain of 53%.

Our trade in PARD is not shaping up the way we expected. The stock looked like it was building momentum and we recommended investors buy at $0.61. So far the price has not been able to hold any gains above this area. The price action has not triggered our stop-loss yet, which is $0.55. If the price does fall to that area, it would represent a 10% loss.

TDGI was extremely volatile on Wednesday. In the last hour of trading volume started to pick up and we received a buy signal when the stock broke above resistance at $0.045. We are expecting to see a strong open this morning.

So far SKPI is turning into an even trade for us. We jumped on the stock when it broke through resistance at $0.42 on Tuesday but we did not see any follow through on Wednesday. SKPI started the session weaker and opened at $0.4797, much lower than Monday’s closing price of $0.505. If volume can build the price would easily recover from yesterday’s drop.

On Wednesday we added TITL to our watch-list, noting that we wanted to see some follow through buying. The stock traded with low volume for most of the day, which caused the price to drop to $0.016. It did manage to recover modestly and rallied to a high of $0.025 but there was not enough activity to maintain its high and the price fell back into modestly negative territory at $0.0191.

ABK offered traders another opportunity for profits on Wednesday. The stock gapped higher and opened at $1.05. However there were very few buyers and the price quickly dropped to a low of $0.923. We think there are higher risks that the price will continue to fall so we’re just watching and waiting for another good entry point.

WAMUQ is also back on our watch-list. This stock has made some decent gains before and we think there is another opportunity. On July 19, WAMUQ rallied to a high of $0.22. Since then the volume has dropped back down but the price is holding good support around $0.17. If this price can attract new investors, we should see another drive higher. Right now we just want to watch this stock as it consolidates between support at $0.17 and resistance at $0.18.

ALTI popped up on our radar screen on Wednesday. The stock is trading in a fairly tight range, with support at $0.35 and resistance at $0.40. There was some modest buying on Wednesday as the stock closed at $0.37. A break of $0.40 on strong volume should provide investors with an opportunity to make a quick profit.

We are also adding COIN to our watch-list this morning. Earlier this month it made some major gains, moving from a low at $0.49 on July 6 to a high of $0.736 on July 14. Despite hitting some selling pressure in the last two weeks, COIN has managed to hold on to some recent gains. We want to see if the price can hold support at $0.60 in the near-term and attract new investors. A break above $0.65 on strong volume could create some strong momentum and drive the price back above $0.70.

Have a Great Trading Day!

Your Hyper Growth Stock Team

Pre-Market Analysis for Wednesday, July 28

Frankytrader — Wed, 28 Jul 2010 00:27:05 +0000

Despite recent gains, the Dow Jones Industrial Average was unable to break through the wall at 10,600. Volume was relatively low during Tuesday’s session so we think that this price area will continue to hold in the near-term. At the same time, we are not expecting to see any major sell-off. Confidence is starting to build and that will provide some buying pressure. We are expecting support to hold at 10,400 in the near-term.

The rally in the tech sector came to a halt on Tuesday. QQQQ, the ETF of the NASDAQ Composite gapped higher at the bell and opened at $46.69. Investors used that strength as an opportunity to take some of their profits. Volume was relatively low so we don’t think this sell-off represents a reversal of the uptrend. We could see more minor selling pressure at the open but we think $46.00 should hold as near-term support.

GLD’s price action on Tuesday is one big reason why we’re sitting on the sidelines and not buying the ETF. GLD gapped significantly lower on Tuesday and it did not take much to drive the price below near-term support at $114.50. The ETF hit a low of $113.21 before investors decided to jump back into the market. For now we are going to wait for buyers to return to the marketplace. It doesn’t pay to try to catch a falling knife.

USO broke through support at $35.00 but we are not paying much attention to the short-term volatility. We are still bullish in the long-term for oil prices and it is only a matter of time before prices move higher. There is still strong support at $34.00 and we are expecting that price to continue to attract investors.

We were expecting to see a strong open in PCBC but even we did a double take when we saw the opening price of $1.02. The fact that the price hit a high of $1.38 is an indication of just how undervalued this stock is. Moving forward, we think there is a high probability of the price falling in the near-term. We recommended investors buy this stock at $0.75 on Monday, which represents a gain of $84%. In these market conditions, that profit will be too attractive to pass up.

We warned that selling pressure in SILA was starting to build and that it would struggle to test resistance at $1.20. On Tuesday the stock opened lower and continued to tank throughout the morning. We think this stock could hit a low of $0.71 before it starts to attract new buyers.

We also received a sell signal in AEHI yesterday morning. We held on to this stock on Monday but we were looking for selling opportunities. The fact that this stock could not test resistance at $0.70 Monday was a sign of weakness. On Tuesday, the stock opened lower at $0.65 and triggered our sell signal.

ADLS is a good learning experience for investors – teaching the importance of patience. The stock gapped higher Tuesday morning and represented a strong selling point for investors. In the morning, the price dropped from a high at $0.0495 to a low of $0.043. The selling did not trigger a sell signal, so we held on. Volume was incredibly low and we were expecting that as volume picked up, so would the price. By the end of the day, ADLS traded 1.6 million shares and closed at $0.048.

ABK was another exciting trade yesterday. After the price broke $0.80 on Monday, we knew there was a very good chance this stock would test $1.00 in the near-term. The rise in volume was a good indication that prices would continue to climb. So Tuesday’s high of $1.03 represented a great opportunity to take some profits. That is a gain of 37%. ABK was able to hold on to some of its gains and closed at $1.01, which is above resistance. We could see another push higher this morning but we don’t know if this jump is sustainable over the medium-term.

ESLR provided our members with another opportunity to make modest profits. In early July, we recommended investors buy shares when the price was hovering at $0.65. It rallied to a high of $0.75, which we said was a good short-term profit area. Last week we recommended investors jump on the trade again at $0.65. On Tuesday the stock hit a high of $0.74. That represented a gain of 13.8%. In total this month, ESLR provided our members with gains of over 28%.

PARD is holding on to its recent gains despite modest selling pressure on Tuesday. It’s holding support at $0.61, which was previously a resistance point. If this price holds and volume starts to pick up, we’re expecting it to test its next resistance point at $0.70.

We managed to make some quick profits in CBIS on Tuesday. We pointed out that the stock triggered a buy signal when it broke $0.07 on Monday. On Tuesday, the price hit some strong resistance at its high of $0.095 and the selling pressure triggered a sell signal. CBIS’s negative close at $0.076 should create some selling pressure this morning. Look for some support at $0.065 in the near-term.

Our scanner alerted us to SKPI and if volume is any indication, we think it should continue to move higher in the near-term. We jumped on this stock when it was trading at $0.40, which represented a medium-term resistance point. Momentum continued to build and the price broke through long-term resistance at $0.50 then closed at its high of $0.505. We are expecting to see a strong open this morning.

We recently took TDGI off our watch-list because there was a higher risk for the price to drop. However the recent price action is starting to grab our attention. The stock made some decent gains on Tuesday, rallying from its open at $0.036 to a high of $0.044. TDGI ended the day at $0.042, which is just below our entry point. We would like to see some follow through buying today, which could trigger our buy signal.

We also like TITL and there is potential for the price to test resistance at $0.05 in the near-term. On Monday, the stock opened just below $0.01 and closed at $0.0205. We saw some follow through buying Tuesday morning and received a buy signal when it moved back above $0.021. Volume is the key to this trade – as long as volume remains strong, the price should continue to move higher.

Have a Great Trading Day!

Your Hyper Growth Stock Team

Pre-Market Analysis for Tuesday, July 27

Frankytrader — Tue, 27 Jul 2010 00:24:39 +0000

The recent price action in the Dow Jones Industrial Average shows that investors are feeling more confident. However the next few days will be extremely important for the bulls. On Monday, the Dow broke through near-term resistance at 10,500. This area is one of two significant barriers – the main price we are watching is 10,600. This is the price the Dow hit on June 6 before sliding to a low of 9,732 on July 2. A break of 10,600 would be very bullish and we would expect to see investors jump back into the marketplace and create a strong uptrend.

The tech sector was also able to extend its winning streak. QQQQ, the EFT of the NASDAQ Composite ended Monday testing some minor resistance at $46.50. We think the major test will come at $47.50. That was the high made on June 21 before the ETF collapsed to a low of $41.77 on July 1. If momentum continues to build, we should reach this area very quickly.

News that most European Banks passed their stress test is helping to build some investor confidence, which is why gold prices are struggling to make gains in the near-term. Investors had fled into gold to protect their capital but now that the situation is starting to clear up, they are closing their positions and may be ready to jump back into stocks. But gold is a very flexible investment so we are still bullish in the long-term. For now we expect $115 to continue to act as support. A break below that price could lead to a test of minor resistance at $114.50.

Investors should be watching oil prices very carefully in the short-term. USO continues to hold support above $35.00, which is a good sign but momentum appears to be waning and we are entering a period of consolidation. Look for support to hold around $35.00 and resistance at $36.00.

Our week is off to a fairly good start. On July 21 and 22 we alerted our members to a potential trade on the horizon, PCBC. The price has traded in a fairly tight range and last week was testing resistance at $0.75. We alerted our members to watch for a break of that level. Monday morning just after the open we received our trade signal and the stock quickly shot higher. The trend remained strong throughout the day and the stock closed at $0.878, which was extremely close to its session high of $0.885.

On Friday several of our recent picks hit our price targets but there were a few we thought had more potential to rise. AEHI is one stock we thought could move higher and we were proven right. Although the stock hit some selling pressure at the open, the price quickly recovered and broke through short-term resistance at $0.60.

SILA has made some very strong gains in the last few sessions and that momentum could propel it even higher. Volume remains very strong but there are signs that the selling pressure is starting to build. Although SILA closed at its high of $1.16, it struggled throughout the session to reach that price. The stock could reach $1.20 but that will represent a very strong sell point for a lot of investors.

Similar to PCBC, we are closely watching PARD. We were waiting for the price to break $0.61 on strong volume and we received that signal on Monday when it hit a session high of $0.62. PARD ended the day just off its high at $0.61. There is some minor resistance at $0.65/$0.66 but a break of this barrier should lead to some significant gains.

ABK is another stock we like as a long-term trade and it is rewarding us handsomely. We recommended members buy shares when the price was holding support at $0.65. On Monday the price broke through strong resistance at $0.80 and closed at $0.86. The next major barrier for this stock is at $0.90.

CRBC has also been a great financial stock for our members. Earlier in the month it was trading at a low of $0.75. When it did not break that support level, we recommended investors buy stock. From July 8 – 13 the stock hovered around $0.91 and represented a good selling point in the near-term. Not surprisingly, the price fell under some selling pressure and dropped to a low of $0.76, which was another great buy opportunity.

On Friday, CRBC gapped significantly higher and rallied to $0.99. There was more buying on Monday at the open and the stock rallied to a high of $1.02. That is a gain of 34%. CRBC managed to close above support at $0.95 but volume remains fairly low so we would not be surprised if we saw some strong selling today as investors take their profits.

LBSR is not shaping up the way we were expecting. Although the stock has not triggered our stop-loss we think that there are more risks to the downside at this point. On Friday LBSR broke through near-term support at $0.022 but we did not see any follow through buying. We are going to keep our eye on this stock because it still has potential but we need to see volume start to increase. A good stop-loss to have is at $0.018. That would represent a loss of 18%.

Monday’s open for EVSO offered a great exit opportunity for our traders. The stock gapped higher and opened at its resistance point of $0.08. We pointed out that the stock was struggling to make gains and recommended investors look for selling opportunities.

As we have pointed out, timing is everything in the stock market. CBIS was on our watch-list but we removed it on July 12 because there was no follow through buying. However we have kept an eye on it and the recent selling pressure created a good entry point.

On Monday we received a buy signal when CBIS broke above $0.07 on good volume. We are now expecting this stock to test resistance at $0.12. Look for some selling pressure in the morning but as volume picks up the price should start to move higher by the afternoon.

We are adding 2 new stocks to the watch-list this morning. The first is CHTL. Last week this stock was under strong selling pressure but on Friday, we saws signs that buyers were coming back into the marketplace. On Monday there was some follow through buying as it hit a high of $0.378. This would be a good buy area as volume supports another drive higher in the near-term.

We are also jumping on ADLS and hope to capitalize on growing momentum. This stock made some major gains on Monday and although it dropped from its high, it still closed in positive territory at its resistance point of $0.045. During Monday’s session, ADLS hit a high of $0.053 but investors used that as an opportunity to take some profits and yesterday’s closing price represented a second chance for a good entry point. Investors should expect to see a strong open this morning.

LEHMQ has presented us with another opportunity to make some profits. The stock sold off sharply on Friday and closed below our key area of $0.07. However the drop created some buying pressure on Monday as investors regained most of the lost territory. A strong open could help to attract investors and drive this stock past resistance at $0.08.

Have a Great Trading Day!

Your Hyper Growth Stock Team

Pre-Market Analysis for Monday, July 26

admin — Mon, 26 Jul 2010 01:09:07 +0000

The Dow Jones Industrial Average ended the week on a high note and managed to recover all of its gains from the previous week’s sell-off. The index closed above short-term resistance at 10,400 but there are still big hurdles to break at 10,500 and 10,600. However if volume continues to build, we should see some added momentum to the current uptrend.

We saw a similar rally in the tech sector. Although QQQQ gapped lower at the open, it quickly recovered and broke through resistance at $46.00. There is still some resistance at $46.50 and the next level above that is $47.00. Earnings data continues to build confidence and this will continue to build momentum in the near-term.

We warned that GLD would remain choppy in the near-term. Although the market is improving, the gains are still tentative, so gold will remain directionless in the near-term. The price channel is starting to narrow but the wider range, with resistance at $117 and support at $115 will continue to hold.

Oil prices are showing signs of growing momentum and in this environment, we think USO has the potential to move higher. The ETF gapped lower on Friday but is holding support above $35.00 so we think it is only a matter of time before it breaks resistance at $36.00.

It’s the beginning of a new week and that means new opportunities for profits. We’ve been on a pretty good run lately and that momentum should continue.

We finished with SFMI for now as the stock hit our price target of $0.175. In fact on Friday, the stock hit a high of $0.18. That is a gain of 38%. SFMI hit some selling pressure by the end of the day as investors like us took their profits off the table. We are expecting to see more weakness in the near-term.

We are a little more optimistic for AEHI. We jumped into this trade on Thursday when the stock broke $0.50 on heavy volume. On Friday, the price hit some resistance at $0.59 but if volume remains strong we are expecting to see a break of $0.60.

SILA has also been a great trade for us and its rally on Friday is an indication that prices should continue to move higher. We jumped on this trade on Wednesday when it hit a low of $0.75. A break above $1.10 should lead to a test of the next resistance level of $1.20. This stock is still being promoted so that will help to attract new investors.

IMGG managed to make some strong profits last week but the price action on Friday could highlight more weakness in the short-term. The stock rallied to a high of $0.365, which was above our price target of $0.35. After hitting the high a lot of investors took their profits off the table. Although IMGG ended the session in positive territory it gave up a lot of gains. A positive open on strong volume could trigger another rally but we are looking for opportunities to decrease our position.

As we have pointed out many times, it’s important to take your profits when you can. LEHMQ is another great example of this lesson. We jumped on this stock on Wednesday when it broke $0.07 and on Thursday as it rallied to a high of $0.078. On Friday, the stock hit a high of $0.0769, which was another good point to take profits. It was unable to maintain the momentum and the selling pressure caused it to break below support at $0.07. We’re expecting to see further weakness in the near-term.

We are looking for exit points in EVSO. We jumped on this stock on Wednesday when it closed at $0.065. On Friday the stock broke resistance at $0.080 and investors used that as an opportunity to take some profits. The price action on Friday could highlight further weakness in the near-term. Although the stock closed in neutral territory, strong selling pressure caused it to drop to a session low of $0.061. We could see some limited buying in the morning but we would use that as an opportunity to sell more shares.

Investors have a second chance for profits in ESLR. As we pointed out the stock has held good support at $0.65 and we saw that as a great opportunity to load up again. On Friday, the stock hit a high of $0.71 and if volume remains strong, it should touch resistance at $0.75. Look for another strong open this morning.

We continue to watch PARD and wait for a good buying opportunity. The stock has been stuck in a range, with support at $0.50 and resistance at $0.61. If we see some follow through buying this morning, it might signal a sustained break above $0.61.

Have a Great Trading Day!

Your Hyper Growth Stock Team

Pre-Market Analysis for Friday, July 23

Frankytrader — Thu, 22 Jul 2010 22:48:09 +0000

The Dow Jones Industrial Average came back with a vengeance on Thursday. Not only was it able to recover all the ground lost in Wednesday’s sell-off but it was able to gain more points. The only downside we see to the 199 point rally is that it was made on relatively low volume. This is an indication that investors are still apprehensive about any economic recovery. In the short-term, we think 10,400 will continue to cap any major advances and we could see some modest selling at today’s open. If the index does break above 10,400, investors will hit even stronger resistance at 10,600.

The tech sector was also able to reclaim lost territory. QQQQ, the ETF of the NASDAQ Composite, gapped significantly higher Thursday morning but even with the strong momentum, it was unable to break resistance at $46.00. Unless investor confidence receives a major boost in the next few days, we think this price will continue to act as a ceiling in the near-term.

Gold prices continue to carve out a fairly wide channel, which is not surprising. Investors are waiting to see a clear direction for the global economy before they jump back into gold. However in the long-term, precious metals still seem like a very safe play. Investors will continue to support gold as a hedge against inflation or as a safe haven investment. We are expecting GLD to swing in a fairly wide range with support at $115 – and as we can see from the price action on Thursday, $117 is providing strong resistance.

USO is fairing modestly better as it broke through short-term resistance at $35.00. The ETF managed to rally to a high of $35.56 and ended the day only a few cents lower. There is very strong resistance at $36.00 so we could see USO struggle to move higher in the next few days.

It has been another profitable week for us. Although the recent gains in the market look a little shaky, we have been able to take advantage of some decent bounce plays.

We first want to touch in with GRNO. We picked this stock up at $0.60 on Monday and managed to take some profits at $0.71 as we saw some strong selling pressure. However the drop below $0.57 on Thursday triggered our stop-loss so we are out of the trade. Still, we managed to make gains of 18% on this trade, so it was not all bad.

LEHMQ was the exciting trade on Thursday. Wednesday’s price action triggered our trade at $0.07 and there was some follow through buying on Thursday. We took some profits at its intra-day high at $0.078 but we think LEHMQ has potential to break resistance at $0.08 in the short-term.

ABK is also providing us with profits. We picked up this stock when it was holding strong support at $0.65 and on Thursday the stock rallied to a high of $0.78. That is a gain of 13% and we think it is only the beginning. ABK is generating some good volume and we think this momentum will lead to another strong push today.

IMGG gapped higher Thursday morning and although it was unable to break above Wednesday’s high, we did have a chance to take more profits at $0.31. The fact that IMGG closed at its high is an indication that we should see at least one more push up.

Another profitable play for us is SILA. We picked this stock up on Wednesday when it was trading at its low of $0.75. On Thursday, the price hit a high of $1.00 which was a gain of 33%. Not bad for holding a stock just one day! Volume is starting to weaken but the fact that SILA was able to close near its session high should provide some momentum at the open.

PCBC is showing some very positive price action and if momentum continues to build, we should see a break of $0.75 very soon. Volume will be the important factor to watch in this trade. The stock will have to generate a lot of activity to have a confirmed break above $0.75. If the price does move above this area, the next major resistance point is $1.00.

Earlier this week we mentioned that we were watching SFMI. This is another stock that has made some very decent gains recently and because of the economic turmoil, appears to be oversold. We’ve been watching to see if $0.125 would hold as a support point and we received our buy signal Thursday at the open. The stock opened at $0.1320 and the strong momentum helped push it to a high of $0.1679. That is a gain of 27% in one session. If volume continues to grow, the price should easily break resistance at $0.175.

We remain active in ESLR after making some recent profits. We pointed out earlier in the week that the price continues to hold support at $0.65, which was our original entry point. On Thursday, the stock hit a high of $0.709. It held on to most of its gains and closed in positive territory, which is an indication that this stock should reach its recent high of $0.75.

EVSO provided us with some quick gains on Thursday. We said that it was due for a bounce and we were not wrong. We received our buy signal at the open on Thursday at $0.065 and rode it to its high of $0.0823. That is a gain of almost 27% in just a few hours. Volume remains strong on this stock so we could see more follow through buying this morning but there is strong resistance around $0.08.

LBSR is poised to resume its uptrend after a two-week consolidation period. On Wednesday, the stock rallied from a low of $0.013 and closed in positive territory at $0.0185. There was some follow through buying on Thursday as the stock opened at its previous close and then rallied to a high of $0.0225. There could be some minor resistance at $0.025 but if volume remains strong we could see significant gains in the medium-term.

Timing is everything when it comes to finding the best plays and that lesson was presented to us in AEHI. We said we were going to remove this stock from our watch-list Thursday morning but the price action was just too strong to ignore. The stock traded over 2 million shares and closed at $0.51, which is three cents above its resistance point. This is the movement we were expecting to see earlier in the week. As we pointed out, we were waiting for the stock to break $0.50 on strong volume. With this kind of activity, expect more momentum at the open.

Have a Great Trading Day!

Your Hyper Growth Stock Team

Pre-Market Analysis for Thursday, July 22

Frankytrader — Thu, 22 Jul 2010 00:25:49 +0000

Positive earnings Tuesday night did not provide much confidence for investors on Wednesday. The bears were in full control of the Dow Jones Industrial Average as it closed at support at 10,100. The price action is a good indication of just how fragile this market is. However because the earnings numbers are relatively positive, we expect the 10,000 area to hold as major support in the near-term. We are expecting the market to swing in a fairly wide range, with support at 10,000 and resistance at 10,400.

The surprising sell-off was in the tech sector. Both Apple (NASDAQ: AAPL) and Yahoo (NASDAQ: YHOO) had positive earnings and we believed that this would provide some momentum to QQQQ, the ETF of the NASDAQ Composite. Instead, the ETF followed the general market lower and even broke through short-term support at $45.00. We are expecting $44.00 to be a stronger support area in the medium-term.

Despite the sell-off, gold prices are running into some resistance and appear to be developing a new trading channel. $117 provided a strong ceiling for GLD. This price is showing stronger resistance than we first thought. However we think that $115 will cap any major sell-off so the ETF should trade in a relatively narrow range in the short-term.

USO is a relatively boring trade as it is caught in a channel with support at $34.00 and resistance at $35.00. Although we are bullish on oil prices in the long-term we are going to sit out this short-term volatility. It just doesn’t pay to trade these small swings in the short-term.

It was an exciting day for IMGG. We were expecting a bounce on Wednesday and we were not disappointed. During the session the price hit a high of $0.307, which is almost a 23% gain from Tuesday’s closing price. The strong price action today should lead to another positive open but remember to take your profits before the price starts to slide again.

We have pointed out many times that it is important to take your profits often in these market conditions and WAMUQ is a great example. On Tuesday, it hit a high of $0.218 and we used that as an opportunity to take our profits because it was our target area. On Wednesday, the stock gapped significantly lower and hit a low of $0.163 during the session. Although the stock is holding support at $0.17 we think it will struggle to make gains in the short-term.

We haven’t talked about EVSO much in the last week but it remains on our watch-list. While there has been some positive price movement, we have not seen any follow through. The stock looks oversold in the near-term and we are expecting to see a bounce very shortly. EVSO has held support around $0.055 and a drop back to this place could generate some buying momentum.

We are taking CTSO off our watch-list, mostly because there is very little trading activity. The stock continues to trade in a tight range, with support at $0.09 and resistance at $0.095 but volume is extremely low. This will have to grow if the price is going to break this channel in the near-term.

We are removing AEHI for the same reason. We are not seeing any follow through buying activity and volume is relatively low so we are not expecting to see any major movement. The stock is caught in wide range, with support at $0.40 and resistance at $0.50 and we don’t think the price is going to break out anytime soon.

We are starting to see some buying in LEHMQ. The stock gapped higher on Wednesday morning and the strong volume triggered our buy signal at $0.07. The stock hit a high of $0.072 but ran into some slight resistance. We are expecting to see volume pick up today and our first major resistance level is at $0.080.

Although GRNO ended the day in negative territory, it is still holding on to most of its recent gains. We pointed out that the stock had an impressive rally the last few weeks so it is not surprising to see some selling pressure. Because volume is relatively low, we are expecting to see a short-term pullback and the price should continue to move higher. A break below $0.60 could signal further weakness and would be a sign to get out of the stock.

GETA is a stock that we have been following for a while and have made decent profits with and that trend looks like it should continue. There are signs that the price is building a good base around $0.035. We are going to watch this stock to see if this area holds in the near-term. We would like to see a break above resistance at $0.04 on high volume to create a very bullish signal.

ABK is holding on to some of its gains despite some selling pressure on Wednesday. The stock is still holding support at $0.66 and we think the price has the potential to move higher very quickly. Because of the recent price action we are expecting to see another positive open today. There is some minor resistance at $0.75 but we think this should break and lead to a test of stronger resistance at $0.80.

We added SILA to the watchlist Wednesday morning and we think it has potential to move higher very quickly. The stock gapped modestly higher at the open and that caused some selling pressure through most of the morning. However investors quickly took advantage of the discounts and drove the price higher. If this stock can maintain its current volume, then we should see it hit $1.00 in the near-term.

We continue to watch PCBC as it moves through its bottoming formation. There is some strong resistance at $0.75 and we are only going to monitor this stock in the near-term. If volume picks up we would expect to see a significant push but until that happens, this stock will remain range-bound.

There are signs that SFMI is forming a bottom. For the last three sessions, investors have supported the price around $0.125 – $0.13. The stock has been in a strong downtrend since mid-June so we don’t want to go rushing into this stock just yet. We want to see that a solid bottom has formed and investors are interested in buying again. If SFMI does generate some momentum at this level, the next major resistance point is at $0.175.

Have a Great Trading Day!

Your Hyper Growth Stock Team

Pre-Market Analysis for Wednesday, July 21

Frankytrader — Wed, 21 Jul 2010 00:07:26 +0000

The bulls are fighting for every inch in the Dow Jones Industrial Average, despite recent disappointing earnings reports. Not only were investors able to hold support at the 10,000 area but they were able to add to Monday’s gains. The Dow ended the day 75 points higher and is now close to testing resistance at 10,250. As we have pointed out, this type of price action is a good indication that optimism is returning to the marketplace. However we are not ready to celebrate higher prices just yet. We need to see stronger volume to confirm any major uptrend.

The tech sector managed to outperform the general market as it closed higher by almost 1%. QQQQ, the ETF of the NASDAQ Composite, gapped significantly lower at the open and the bulls had to fight most of the day to push prices back above Monday’s closing price. However the ETF still has to face very strong resistance at $45.50. Strong earnings from Apple (NASDAQ: AAPL) and Yahoo (NASDAQ: YHOO) could provide some momentum at the open but we remain cautious over any major gains in the near-term.

Gold prices are moving higher and on Tuesday, they regained some lost territory after two massive drops – one on Friday and the second on Monday. As we’ve mentioned, investors are quick to take advantage of discounted prices in GLD. Looking at the chart, there is some short-term resistance at $117 but we don’t think this will prove to be very strong. In the short-term we are expecting GLD to trade in the $118 area.

Oil prices remain range bound and USO continues to trade between support at $34.00 and resistance at $35.00. The ETF has been caught in this channel for over a week and we are expecting this price action to continue as investors try to determine the trend in the overall market. If the Dow continues to shed points and breaks below 10,000 we would expect USO to trade below $34.

WAMUQ was a very exciting play for traders on Tuesday. In the morning, the stock rallied to a high of $0.218. This is the move we were expecting to see after the price broke above resistance at $0.18. After reaching the session high, investors quickly took their profits off the table. The increased selling pressure drove WAMUQ to a session low of $0.1565. Investors jumped back into the trade and drove the price above its old resistance point of $0.18. If WAMUQ can hold this price area then we would expect to see another push higher.

We are putting LEHMQ back on our watch-list. For a while, LEHMQ and WAMUQ were trading in a very similar pattern but that correlation broke down about a month ago. However LEHMQ is looking oversold and we are expecting to see some buying in the near-term. We will start to get excited about this stock if it can break short-term resistance at $0.07 with good volume. A break of that level should lead to a test of resistance at $0.08 and even $0.085.

GRNO continues to make all-time new highs and if it can continue to generate strong volume, we are expecting this trend to continue. The selling pressure Tuesday morning provided a great opportunity to get into a position. The key is to wait for other buyers to come back into the marketplace before you jump into a position. It is never a good idea to buy a stock on the way down because you just never know how far it will fall. Because this is a “blue sky trade” investors will take their profits at regular intervals and this is why we saw selling in the morning. However there are a lot of investors who are anxious to buy this stock and drive the price higher. As we can see from the chart, volume supports higher prices in the near-term.

We have been looking for buying opportunities in ABK and it looks like our patience is paying off. For the last few weeks, the price has held good support around $0.65/0.66. On Tuesday, after hitting that price, the stock managed a modest rally and closed at $0.69. A break of short-term resistance at $0.70 on strong volume could lead to a test of the $0.80 area.

SILA is a new stock we are adding to our watch-list today. It has been promoted fairly heavily over the last few days but that is not necessarily bad. The stock has made some decent gains in the last two sessions and on Tuesday it closed at its session high of $0.85. With this kind of momentum, we think this stock has room to move higher and we are expecting to see another strong open.

Also new to the watch-list is PCBC. This stock is forming a bottom between $0.66 and $0.62. It trades decent volume but it is relatively low at the moment. We would like to see a break of $0.75 on strong volume. That could lead to some significant gains as the next major resistance level is around $1.30.

We were debating as to whether we keep CTSO on our watch-list or not. The stock held good support at $0.09 but volume is at our base minimum. This will have to improve if the price is going to break resistance at $0.095. The reason we are keeping this stock on our watch is because higher volume supports higher prices.

AEHI is similar in that there was not a lot of activity on Tuesday and the price is having trouble breaking above resistance at $0.50. However we are going to continue to watch this stock because it has the same potential as CTSO. A break of $0.50 on strong volume should lead to decent gains very quickly.

We think there is the potential for a bounce play in IMGG. We have had fairly decent success with this trading style in the last few weeks. The fact is that with all the fear and pessimism in the marketplace, it’s easy for stocks to become oversold and then we get a bounce as investors start to buy again. There was strong capitulation in IMGG on Friday and Monday but there are signs that buyers are ready to jump back into the market. The stock closed near its first resistance point at $0.25 and a break above this area should lead to a drive back to $0.325.

Have a Great Trading day!

Your Hyper Growth Stock Team

Pre-Market Analysis for Tuesday, July 20

Frankytrader — Tue, 20 Jul 2010 01:14:55 +0000

We’ve pointed out that the recent rally in the Dow Jones looked fragile so we were not surprised to see the sell-off on Friday. However there is some good news. Although there is still some fear in the marketplace, the bulls were able to hold their ground at previous resistance levels.

On Monday, investors supported the index around 10,100 and managed to push it into positive territory. If the bulls can hold this level, or at least the psychological area of 10,000, then we could see higher prices in the medium-term. In the short term, we will be very cautious over any rally. As we saw from Friday’s price action, volume currently supports higher prices.

There was similar price action in the tech sector. QQQQ, the ETF of the NASDAQ Composite managed to recover some of its lost territory from Friday’s major sell-off. The ETF is finding support at $44.00, which is very positive but volume points to lower prices in the near-term. A break of $44.00 would lead to a test of support at $43.50. If prices start to move higher, there is strong resistance just below $46.00.

Some investors took advantage of extremely low gold prices on Monday. GLD gapped significantly lower on Monday but investors jumped back into the market when prices hit a low of $115.11. As we said earlier, although we are bullish on gold, we’ve been sitting on the sidelines as the ETF works through some extreme volatility. However a drop to $115 is very attractive and we are expecting to see some follow through buying today. GLD could easily trade back around $118 in the next few days.

USO is having trouble breaking through resistance at $35.00. On Monday the oil ETF closed in neutral territory, which is a sign that investors are waiting to see if optimism can return to the marketplace. We think USO could struggle to make gains in the near-term as investors continue to take some profits off the table. The ETF made some decent gains this month, trading at a low of $32.30 and hitting a high of $35.30.

WAMUQ is the story of the day. We have been watching this stock since it was trading around $0.17. The strong price action last week was a very good indication that prices would move higher in the near-term and so far we have not been disappointed. The stock has held good support at $0.18 for the last few sessions and this triggered a strong rally on Monday. WAMUQ hit some resistance at $0.20 but if volume remains strong, we think it has enough momentum to reach $0.21 this week. So far, WAMUQ has made gains of 17% since we jumped in on July 12.

We added CTSO to our watch-list on Friday and it remains there for the time being. The price is holding good support at $0.09 but if it is going to move higher, we need to see stronger volume. This stock does have good potential but we want to see a break above $0.095 on higher volume before we jump in to this market. The stock closed at its high of the day on Monday so we are expecting some follow through at today’s open.

We wanted to quickly talk about OXGN because it is a good lesson on knowing when to take your profits. We exited most of our position on Thursday when the stock hit a high of $0.40. That represented a strong resistance point. However we did have a small position in case the stock managed to break that level. But the price action in the last few days is an indication that the stock could struggle to make gains in the near-term. The lesson all traders must remember is to take their profits. An unrealistic gain can turn into a realistic loss very quickly.

GRPR also remains on our watch-list. The stock has traded in a fairly wide channel, with support at $0.70 and resistance at $0.80. The neutral close on Monday is an indication that resistance should break in the near-term. A break of $0.80 would lead to a test of minor resistance at $0.90 and a break above that price should lead to a drive back to $1.00. Volume will be the indictor to watch for in the next few days; if it increases so will the share price.

We are also waiting for a signal in AEHI. This is another stock we put on our watch-list on Friday which has good potential if volume can increase in the next few days. The price has tested resistance at $0.50 for three straight sessions and if investors manage to push it higher, they could drive it to the next resistance level at $0.60.

As we pointed out, the $0.525 area has provided some support for GRNO. After hitting that level on Monday, investors drove the price to its recent resistance point at $0.65. Although volume was well below the average for the last few days, this price action could lead to some follow through buying at the open.

We continue to watch SFMI because we want to see just how far this price has to fall before we see a significant bounce. Just a few months ago, it was trading at all-time high prices and now it is testing support established in April. We are watching the $0.13 area very closely. If this price holds in the near-term we could see an opportunity for a quick bounce play. If the price breaks below $0.13 it could fall as low as $0.075 before it attracts buyers back to the marketplace.

On Monday, ESLR re-tested support at $0.65 and we could see some follow through buying at today’s open. Investors were quick to take advantage of these lower prices so we would not be surprised if this stock retests resistance at $0.75 in the next few days.

Have a Great Trading Day!

Your Hyper Growth Stock Team

Friday July 16 Premarket Analysis

Frankytrader — Fri, 16 Jul 2010 03:59:00 +0000

The rally in the Dow Jones Industrial Average came to a halt on Thursday as it closed in negative territory by seven points. It is not surprising that investors are starting to take some of their profits off the table as the index has made over 7% gains in the last seven sessions. The Dow hit a low of 10,240 before investors jumped back into the market. We believe the market will trade sideways in the near-term, with support between 10,250 and 10,200 and resistance at 10,600.

For the second session, the NASDAQ managed to outperform the general market. QQQQ, the ETF of the tech sector was hit with some selling pressure but found strong support at $45.00. Investors quickly jumped back into the market and when the dust settled, the ETF closed in positive territory at $45.60.

The price action on Thursday is a good sign that optimism is creeping back into the marketplace because investors jumped in and supported the price at higher levels. If the earnings season remains strong then we should see this uptrend for QQQQ continue through the medium-term.

GLD spent another day in negative territory, which is not surprising. Earlier in the week we warned members that as positive sentiment continues to grow, investors will move out of safe havens like gold and back into riskier investments like stocks. We see more risks in the near-term but we also see strong support at $116 and remain bullish on gold in the long-term.

Oil prices are struggling to move higher in the near-term but this should only be for the short term. As soon as investors regain their confidence, they will start to buy oil stocks. USO is already finding support at higher levels. On Thursday, the ETF hit a session low of $33.96 but investors quickly took advantage of the discounted prices and drove them modestly higher. In the near-term, $34.00 should continue to act as a good support level.

Our profits continued to roll in on OXGN as the stock hit a high of $0.40 yesterday morning. There was some volatility in the afternoon as the price dropped to a low of $0.28, but that didn’t last long as investors jumped at the discount and drove the price to close at $0.36. We pointed out that this stock looked like a good buy when it was trading around $0.30 so yesterday’s high represented decent gains for holding the position for a few days.

WAMUQ is barely hanging on to its recent gains, which could be an indication that sellers are jumping back into the marketplace. For the third straight session WAMUQ was unable to break resistance at $0.185. Volume is still relatively low so this will have to improve if the stock is going to maintain higher prices.

ALTO suffered from low volume on Thursday but we remain optimistic that it will break above resistance at $0.025. When volume increased during the session, we saw that the price also moved off its low so this is a good indication that stronger volume will support higher prices in the near-term. Remember to respect your stop-losses. If the stock breaks below support at $0.02 you should be prepared to get out quickly.

We were disappointed in the price action in ZMGD on Thursday. This stock had great potential to move higher. On Wednesday, it traded almost 2 million shares and tested resistance at $0.022. But investors could not maintain that momentum and there was strong selling pressure at the open yesterday. The sudden drop triggered our stop-loss at $0.017. This stock traded in a tight range, so we wanted to control our risk. Although we are out of this one, we will keep it on our radar to see if there’s another opportunity to make money.

We are starting to see investors take their profits in GRNO. This stock has made some very strong gains in the last seven sessions so we knew it was only a matter of time before the stock corrected. We are going to watch $0.43 and $0.425 as support areas, but investors could start buying the stock before that price. There appears to be some minor resistance at $0.52 that might attract investors back to the marketplace.

GRPR ended Thursday in neutral territory and its strong open was an indication that investors are interested in taking this stock higher. As volume improves it is only a matter of time before there is a break above $0.80, which should lead to a test of resistance at $0.90.

Last week ESLR made some decent gains and it looks like investors are trying to create some momentum. In the last two sessions, the price has held at support around $0.69 and for the last three sessions, has closed in neutral territory. If volume increases, ESLR should break through resistance at $0.75.

SFMI remains on our radar. This stock made decent gains in May and as optimism picks up in the marketplace, we think this stock has the potential for another uptrend. For now we want to see signs that the price is forming a bottom, and we could be close. On Thursday, the stock hit a low of $0.155 which created a buy signal for some investors. The stock closed in positive territory at $0.165. A break above resistance at $0.175 would be very bullish in the near-term.

AEHI is a stock that looks like it’s ready to take off. On Thursday, it tested its support at $0.40 and resistance just below $0.50. The fact that the stock closed in positive territory and was able to trade higher than average volume is a good indication that it should break above $0.50. We are expecting to see a strong open this morning and if volume is strong enough the price should even break above the next resistance level of $0.60.

Another stock we like is CTSO. It managed to close above resistance at $0.09 and is close to testing the next level at $0.095. This stock has been volatile for the last month so we would watch the open. Strong buying at the open should be a good indication that this stock is ready to resume its uptrend. The positive close yesterday should help to add some momentum to today’s open.

Finally, BIEL continues to inch higher and if volume remains strong, this stock should break above resistance at $0.02 in the short-term. The stock has managed to hold strong support at $0.018, which is why we are bullish but we are waiting for a clear signal that this stock is ready to move higher and a break of $0.02 would be that trigger.

Have a Great Trading Day!

Your Hyper Growth Stock Team