daytrades feb 7 pre-market, page-2

Aksier's Weekly Update:

The Scorecard from Friday / The Past Week
Markets
XJO 4864.3 points, +57.9 points, Up 1.2% / -72.4 points, Down1.5%
DJIA 12,169.9 points, -88.3 points, Down 0.7% / +39.4 points, Up 0.3%
SPX 1,321.2 points, -9.8 Points, Down 0.7% / +1.3 points, Up 0.1%
NASDAQ 2,784.7, -14.1 points, Down 0.5% / +3.7 points, Up 0.1%
FTSE 5,990.4 points, -14.7 points, Down 0.2% / -10.8 points, Down 0.1%
DAX 7,178.9 points, -47.1 points, Down 0.7% / -6.3 points, Down 0.1%
Hangseng HSI 23,408.9 points +286.4 points, Up 1.2% / +396.5 points, Up 1.7%
Nikkei 10,693.7 points +107.6 points, Up 1.0% / +166.9 points, Up 1.6%
Shanghai 2,942.2 points +39.2 points, Up 1.4% / +63.6 points, Up 2.2%

Key Commodities
Gold +$17.50 to $1,433.30, Up 1.2% / +$23.00, Up 1.6%
Silver +$1.44 to $35.68, Up 4.2% / +$2.28, Up 6.8%
Oil USD +$2.48 to $104.91, Up 2.4% / +$6.74 , Up 6.9%
Copper USD +$0.010/lb to $4.4751/lb, Up 0.2% / +$0.007, Up 0.2%


Market Direction XJO: The Australian market lost ground last week, falling by 1.5% over the week. Volume spiked during the sell down of stocks as investors locked in profits from the rally which has taken place over the past nine months. The week ahead is likely to start on a soft note following falls in offshore markets on Friday night. The one bright spot is again likely to be precious metal stocks with gold and silver both rising significantly on Friday Night. Silver added 4.2% to a new 30 year high. The gold Silver Ratio continues to fall and is now approaching 40. Looking ahead to later this week the indicators on the chart currently show that there is potential for short term upside to the top of a trading wedge at around 4,975 points. The direction beyond that point will no doubt be driven by global events. If prices were to break down from the bottom of the wedge then a target of around 4,200 points on the XJO looks likely.

The USD looks vulnerable to further falls this week. If the current level doesn't hold then the next target is around 74.0 points which was the December 2009 low. The rising volume on the latest sell off is a sign that support is about to be tested.


Market Direction DJIA: Concern over rising oil prices and its effect on economic growth weighed heavily on international markets last week. The index is currently on support just outside the trading channel which began last June. If the index re-enters the channel on further weakness then a target of 11,700 looks possible. The alternative scenario, which is supported by a rising stochastic and MACD Histogram, is for a bounce off the current support line followed by a move to new highs for this rally.



Economic Data:
This week will start out quietly on the economic front with no significant international data coming out until Thursday evening. Markets will be closely eyeing the Chinese CPI figures coming out on Friday, which will provide a clue as to the need for further interest rates rises there in order to rein in inflation. Retail sales data for February in the US will be released on Saturday morning along with a key Consumer Confidence reading.

AUD ANZ Job Advertisements m/m - Monday 11:30am
AUD Home Loans m/m - Wednesday 11:30am
AUD Employment Change - Thursday 11:30am
AUD Unemployment Rate - Thursday 11:30am
CNY Trade Balance - Thursday Tentativve
GBP Manufacturing Production m/m - Thursday 8:30pm
GBP Asset Purchase Facility - Thursday 11:00pm
GBP Official Bank Rate - Thursday 11:00pm
GBP MPC Rate Statement - Tentative
AUD RBA Governor Speaks �Australian Business in Europe Luncheon�- Friday 12:30am
USD Unemployment Claims - Friday 12:30am
USD Trade Balance - Friday 12:30am
CNY CPI y/y - Friday 1:00pm
GBP PPI Input m/m - Friday 8:30pm
USD Core Retail Sales m/m - Saturday 12:30am
USD Retail Sales m/m - Saturday 12:30am
USD Prelim UoM Consumer Sentiment - Saturday 1:55am
GBP BOE Governor Speaks �Stanford Institute for Economic Policy Research Summit� - Saturday 7:45am


Company Reporting Season:

Earning season has come to a close for another quarter so very few large companies are reporting results this week.

Monday:
Tuesday:
Wednesday: Swire Pacific Ltd (Owners of Cathay Pacific)
Thursday: Volkswagen AG
Friday:


Stocks To Watch

Muting Gold Limited: MYG/MYGO/MYGOA I continue to keep MYG on my list of stocks this week in the expectation of an increase in interest as drilling results draw nearer. Drilling at the company's Deflector Deposit has now been underway for 3 weeks and I am watching for significant volume as a sign that the level of interest is picking up. The poor performance of late is probably related to the fact that the company raised a $4.5m in fresh capital at 8.0 cents late last year (56.3m shares). Many would be tempted to take a 60% profit in such a short time period so I believe that is where much of the current stock is coming into the market. Don't forget that NY firm RB Milestone is now covering MYG, so any positive results may result in an updated release about MYG being released. The target for Deflector is 1.65-2.50m oz of gold and 40-80K tonnes of copper, which is a sizeable resource. News Due: Drilling results from the extension drilling program at the Gullewa Project which contains the Deflector Deposit. Price Target: The pennant pattern continues to unfold although the price range is getting tight so a break one way or the other looks close If the break is to the upside then the target is 26.5 cents, however there might be some resistance at the recent high of 20 cents. Disclosure: Holding MYGOA



Metaliko Resources Limited: MKO In the final week of February the company released some excellent drilling results from RC drilling at the Anthill Gold Project. The program intersected very broad zones of gold mineralization including 44m @ 2.4g/t Au from 56m, 32m @ 1.81g/t Au from 89m, 15m @ 2.34g/t Au from 46m, 19m @ 1.47g/t Au from 49m and 11m @ 2.33g/t Au from 89m (End of Hole). These results point to the existence of a significant gold resource at Anthill. Resource calculations will be undertaken during March subject to the availability of resource consultants. I suspect UBS has 1.5m shares to go before they are finished selling. Given recent volumes, that could be absorbed in the next two trading days, or sooner if more buyers enter the market, after which I expect a substantial re-rating to occur. News Due: Initial resource calculations for the Anthill and Goongarrie mineralization. Interpretation of the 11,000 line kilometres of high resolution aeromagnetic surveys conducted in February. Details of further drilling programs at the company's gold projects. Price Target: There is a pennant which has formed from the recent high of 25.5 cents. A breakout to the upside gives a target of 35 cents. Once the line of stock from UBS is cleared I expect this target to be achieved in quick time. Disclosure: Holding MKO



Silver Mines Limited: SVL/SVLO In the current bullish Silver market, Sillver Mines Limited looks like it has further upside in the near term. The company took the market by surprise in February when it disclosed a conceptual target of 26-57m ounces of contained silver plus copper, lead and zinc credits at its Webbs Silver Project. Silver was up by 4.2% on Friday night and 6.8% percent for the week so the level of interest in the sector is likely to continue. Results from the Diamond drilling program which began late last year are due to be reported any time. All holes to date have intersected visible mineralisation so I would expect some good results due from these holes will maintain the current upward momentum of SVL's share price. Further interest will come as the company commences a 12,000m RC drilling program in late March. Once the program is underway a continuous stream of results should come from the company. News Due: Results from diamond drilling at the Webb's Silver Project, most of which are scissor holes which will primarily be used to confirm existing mineralization thereby increasing the confidence in the existing resource and to provide samples for metallurgical test work. The commencement of the 2011 drilling program, which will involve 12,000m in RC holes, 8,000m of which will be centred on the Webbs project. Results from the scoping study into the development of a mine at the Webbs Silver Project. Price Target: Although the slow stochastic and MACD are at high levels, I still expect the target of 45 cents to be hit soon due to the continuing increase in the Silver price and the beginning of a constant news flow from the company as the 2011 exploration program kicks off. Disclosure: Holding SVL/SVLO



Good Luck this week.