daytrades may 3 pre-market, page-2

This Weeks Picks

Market Direction: GDP q/q numbers released on Friday were only slightly under consensus which is a sign the economic recovery is still on track. However, despite this news the market fell on concerns over a criminal probe into Goldman Sachs activities and worries over debt problems in Greece and other EU countries. Our market is likely to begin the week with another sharp sell off but gold stocks may hold up better than others after the price rose $1,179 on Friday night. The AUD fell 0.6 of a cent which amplifies the price increase.

The monthly jobs market reports come out on Friday this week which is likely to lead to increased volatility as the week progresses. Other key data out this week includes:

US ISI Manufacturing PMI Tuesday 12:00am
AUD RBA Cash Rate Tuesday 2:30pm
GBP Halifax HPI May 4th - 8th
GBP Manufacturing PMI Tuesday 6:30pm
US Pending Home Sales Wednesday 12:00am
AUD Building Approvals Wednesday 11:30am
US ADP Non Farm Employment Change Wednesday 10:15pm
US ISM Non-Manufacturing PMI Thursday 12:00am
AUD Retail Sales Thursday 11:30am
AUD Trade Balance Thursday 11:30am
AUD Trade Balance Thursday 11:30am
GBP Services PMI Thursday 6:30pm
GBP Parliamentary Elections Thursday All Day
EUR Min Bid Rate Thursday 9:45pm
EUR ECB Press Conference Thursday 10:30pm
US Non Farm Employment Change Friday 10:30pm
US Unemployment Rate Friday 10:30pm

From today I'll start adding charts with some comments to my posts provided where I feel it helps the analysis.

Sectors of Interest: Gold was up $18 per ounce on Friday so there should be some interest in that sector this week hence my inclusion of some .

CVY: After the close on Friday the company release its quarterly report which included some new drilling results from the Fisher and McKellar prospects. Results included 1.8m @ 17.1 g/t au from 85m, 0.9m @ 14.5g/t au from 11.3m, 3m @ 4.1g/t au from 40.4m, 1m @ 6.0g/t au from 126.3m at Fisher and 0.7m @ 11g/t au from 16.5m, 3.5m @ 2.7g/t au from 35.5m and 2.7m @ 4.0 g/t au from 36.8m at McKellar. Importantly the strike length at Fisher extends to over 300m (open to west and at depth) whilst at McKellar the length is now more than 350m (open to the southwest, northeast and at depth). Given the increase in the gold price on Friday it will be interesting to see how the market reacts to these results today. News Due: Details of the exploration program for the summer of 2010, including the anticipated 20,000m drilling campaign at the Cameron Lake Gold Project. Conceptual studies into underground mining at Cameron Lake. Price Target: 30 cents once 25 cents gets broken convincingly. Support is at 22 cents. Disclosure: Holding CVY



OVR: Volume has seen a trend declined to almost zero by the end of last week. The quarterly released on Friday stated the DFS is on schedule and that exploration (both green and brownfields) is expected to commence in mid May. The MD is headed over to Canada to oversee progress in May and June so I expect activity and the associated news flow from OVR is about to ramp up significantly. News Due: Appointment of engineering consulting firm for the DFS on the Yukon base metals project. Commencement of 2010 exploration work. Price Target: A break of 12.5 cents on volume should see the stock heading towards the next significant resistance level of 30 cents. There might be a pause at 15.0/15.5 cents assuming we get the same measured move as occurred from 7.5 to 12 cents. Beyond that there might be a pause at 17.5 cents, which was the high set in April last year; however, this is not a strong resistance level according to the chart. So the upside for OVR from current levels is 300%. Support should be strong at 9.5 cents. Disclosure: Holding OVR



SVL: A small placement at 8.5 cents was announced to the market after the close on Friday so there is likely to be some selling pressure this morning. However with lab assay results from the Webbs project due lin the next week or so I expect any weakness to be short lived. I'll be watching closely for an entry this morning. News Due: Lab assay results from hole RC076 at the Webbs Silver Project in NSW. Price Target: 10.5 cents is likely to provide reasonably strong resistance in the short term however once that level is broken the next target is 14 cents. Support is at 8 cents. Disclosure: No Stock Held



PNX: I have added PNX to my list this week due to the assay results referenced in the quarterly which are due at any time. Based on the information released to date I expect some very good results and given they are close to the surface the market is likely to get excited by them. Volume needs to pick up before I would say that day traders will be attracted but on the basis the news is good there should be a good trade in this with potential for the share price to move into blue sky. Another interesting sign is that the bots have been active here I suspect on behalf of Macquarie Institutional. Check the PNX thread for more details. News Due: Assay results from drilling at the Princess Royal Copper Project where inspection of the core has revealed several spectacular intervals of visible copper very close to the surface. Price Target: Resistance at 20 cents needs to be broken. With an initial target of 22 cents followed by 24 cents and then blue sky. Disclosure: Holding PNX



Good Luck with your trading this week.