daytrade diaries... september 23, page-2

Todays Picks

ARM: Yesterday we had a nice breakout from a flag pattern. If we take a look at the flag pole beginning on the 2/9, and measure to the high on the 15/9 (42 cents), we have a height of 15 cents. Therefore the target is 15 cents from the breakout point of 43 cents which means ARM should be headed to 58 cents, hence my range on 55-60 cents, or very close to record highs. Anyway there is plenty of room left for further increases in the short term for those looking for a trade. The large line at 45 cents should go today followed by a jump to 50 cents.

BCN: Still holding my 460K options which I’ll probably try to sell today some time. BCN has been very good to me but I am very glad that I sold down from my 8.5m BCNOA holding which I owned in early August.

THX: More encouraging price action yesterday with buyers continuing to pick up stock available under 30 cents. I am still waiting for the assay results from the hole TPCRC019 on their Thunderball project. The company has already said they expect the grades to be exceptional and higher than hole TPCRC008 which assayed 5m at 7,600ppm uranium (that’s 17lb per tonne by the way).

IFS: Still holding onto recent gains. Hopefully we see more support from directors and their connections in coming weeks.

RED: My hopes of a retrace back to 10 / 10.5 cents have faded so I’ll probably have to step up and pay 11.5 for the rest of my target holding today but so be it. I believe the potential returns here justify this action.

IMA: Still looking to accumulate more stock in the lead up to the release of their drill results from the Eucia basin. The downside risk here is limited versus significant upside particularly on any corporate activity.

BLY: Still holding my traders from 29 cents (thanks for this one robbbbbbb). The chart looks excellent.

BGD/BGDO: Yesterday there were clear signs of impending price action so I picked up more options plus a few heads. I expect the stock to rise further this morning and over coming days. We should be getting closer to more news on the Gladstone steel plant.

OVR: OVR has been a long term holding for me on the back of what I believe to be a significant undervaluation of their Andrews base metals project. The recent sell down has been caused by a couple of top 20 holders exiting their positions however I believe they are now done. With the recent increase in the zinc and lead price I believe OVR is now one to watch for a potential re-rating (note top 20 still own over 70 percent). I currently hold and will continue to do so until the projects value is reflected in the share price.

Good luck trading today everyone.