daytrade diaries... january 22, page-2

Todays Picks

It looks like volatility has returned to the markets so I expect a wild ride for the time being as the markets correct. It has been an incredible run so I will not be surprised to see at least a 10% fall. The economic data coming out of the US simply does not justify the level of optimism that has flowed back into the market since March. Anyway no daily tips sheets next week because it is time for a break from the game. In the mean time good luck to everyone here with your trading.

ORD: Yesterday was the second day in a pull back and as a result the chart has turned bearish in the short term. The stochastic has crossed down from the mid 70s and the RSI is also falling towards the centre line and the MACD is still holding up. Given the changing market sentiment it will probably take good news to move ORD back above 7 cents in the near term. News Due: Development plans for the Bauxite project in Laos. Commencement of ground EM surveys at the Copper Flats project.

VLA/VLAO: I am still holding 100K options but have held off buying more until I see signs of a stabilizing price. There is still one more day before the T+3 traders who bought on the first big rise day work their way through the system. The share price managed to strengthen in the last half hour but that is unlikely to continue in todays environment. News Due: Further details of program for phase II trials.

ADO/ADOO: The 50% fib line at 5.6 cents was hit and briefly surpassed yesterday followed by some solid buying in the last 30 minutes of trading. Since I was not so busy trading yesterday I decided to use the time to conduct further research on ADO and its product. This included a 30 minute discussion with the CEO. I was impressed with what he had to say and as a result doubled my position in the options. Ill write a more detailed piece on this in coming weeks, subject to my due diligence being completed satisfactorily. There is an EGM today so hopefully Geoff Cummings will use the opportunity to provide an update on future plans for the company. News Due: Further licensing deals for the companys Mix&Go technology.

PNX: Lab assay results were released yesterday afternoon from the Princess Royal prospect and they were very good. At first glance the grades might not appear to be that exciting, but the key here is that the mineralisation occurs from very close to surface so extraction costs are going to be low. Better results included 33m @ 1.19% Cu from 4 metres and 1m @ 5.08% Cu at 5m. I will watch with interest when they bring in a diamond drill rig to test this prospect to much deeper levels. It would not surprise me to see PNX buck the down trend today on the ASX because the results yesterday were certainly good enough to warrant it. News Due: Further drilling results from the Black Hill Gold project where significant intersections have previously been announced. Commencement of further drilling at the Princess Royal prospect.