daytrade diaries... february 10, page-2

Today's Picks

GGP/GGPO/VIL: Yesterday was a spectacular day's trading however I choose to focus on VIL and VILO. VIL was easily the most traded stock on the ASX yesterday Given the sell-off in the afternoon I am expecting some weakness on the open this morning. This might present further opportunities to trade should the price recover later. However I would not be surprised if an announcement comes out before the open about progress on testing and if the initial flow rates are good then the price may well gap up. Technically both VIL and GGP are overdue for a retracement but news will continue to be the major driver of prices here at the moment. News Due: Flow rates from the lowest interval of the Fausse Point well.

MHM/MHMO: A great day yesterday for MHM/MHMO holders. The chart looks very bullish now with the MACD and RSI looking particularly good but not yet overbought so there should be room for further gains in coming days. I am sure people are taking positions ahead of an update on the proposed silica project. It is quite likely that tomorrow will see a new all time closing high above the previous record of 38 cents. With a decision is to go ahead the stock is also likely to test the all time high of 45 cents set last October. News Due: An update on the Silica project (Wacker AG) is due within a week. Plans for exploration on gold and base metal projects located in Tasmania.

ORD: Shares in ORD have been sold off heavily in during the recent market downturn. After looking at the chart and watching the buyer depth increase in the last couple of days I decided to double my holding at 4.5 cents yesterday. Yesterdays candle was reasonably bullish however apart for the stochastic the other indicators are yet to give buy signals so some caution is warranted. I cannot find a specific reason to justify why the stock has lost more than a third of its value in the past few weeks other than the general market weakness and the fact that commodity prices are weak. I am hoping for a bounce to between 5.3 and 5.5 cents based on a retracement of the fall from 7.1 cents to 4.2 cents. News Due: Update of development plans for the bauxite project in Laos. Progress on approval of exploration plans for the Copper Flats project.

ARM: The bots were hard at work again yesterday and managed to help get the close at the days lows. I suspect the game is about to change again as a round of fresh demand for shares hits the market. Presentations to potential investors both here and overseas (including larger institutions) have started again. ARM is still in a consolidation phase however we must be due to hear more detail about the upcoming program at the Capricorn project in the near future. It is worth watching the stock closely because I expect a breakout to be swift when it finally comes with a target of $1.25. News Due: Details of upcoming exploration program for the company's Capricorn Manganese project.