daytrade diaries... february 5, page-2

Today's Picks

VLA/VLAO: Yesterday I outlined the reasons why I thought the short term was close for VLA and yesterday?s price action supported my case further. Although the price action didn?t deliver the harami cross I was hoping for there was certainly a bullish hammer candle signaling a reversal could finally be underway. The selling pressure certainly seems to have eased yesterday so I believe my assumption that the amount of conversion stock hitting the market has declined last conversion was done at 5.92 cents is a reasonable one. I backed my judgement yesterday and bought some head shares in the last half hour of trade. News Due: Update on IND application status with the US FDA. Further details of program for phase II trials. Results from other Phase I trials on different cancers.

ARM: The bots continued to work away on ARM yesterday and it appeared that the price was going to fall through $1.00 until the buyers moved in during the last half hour taking the stock from 1.035 to its close on the high of the day at $1.07. I had an order left from the previous day at $1.07 which got hit before I saw the move up so I sold 25K. The chart is starting to look bullish again with the stochastic crossing up, the RSI rising and the MACD looking like it might cross over soon.(I?d recommend people look at Kevi?s excellent chart from yesterday afternoon on the Daytraders diaries thread because it clearly shows the uptrend channel). Anyway the uptrend which started last December still remains intact and the indicators are starting to give signals that there is more to come. My next target for ARM once $1.12 gets broken is $1.25. I expect that might be achieved in the near future. News Due: Details of upcoming drilling program for the company's Capricorn Manganese project. Outline of future plans for the Camel Hills Magnetite project.

GGP/GGPO/VIL: Both VIL and GGP had more bearish days yesterday with GGP putting in a spinning top and VIL a bearish inverted hammer candle. Some nerves might creep into the market tomorrow because the testing begins on the weekend and there might be some holders who wish to exit prior to results being released to the market. To offset this there will also be some who still want to take on a position in anticipation of good results. If the price falls today I?ll be tempted to buy again VIL and GGPO again. News Due: Results from testing of the Fausse Point well.

ADO/ADOO: The momentum certainly continued for ADO/ADOO yesterday following on from the previous day?s bullish Marubozu candle. The price continued to move up strongly to a high of 5.2 before settling back at 4.8 on the close, but still up 14% for the day. The chart looks bullish with the stochastic and RSI rising however the MACD is yet to show signs of crossing. I am hoping to meet with the CEO today and will post further thoughts about the company following those discussions. News Due: Further licensing deals for the company's Mix&Go technology.

MHM/MHMO: The stock is back on my trading list today because the chart is now looking decidedly bullish The stochastic has crossed up, the RSI is rising above 50 and the MACD looks set to cross up within days. There was some publicity in the Advocate newspaper concerning the proposed silica plant on Monday which referred to the likelihood of an update within a fortnight. I expect the price of MHM's shares will move towards 35 cents prior to this update. It is also important to note that the company is currently conducting a roadshow. I decided to increase my holding in the company by buying some head shares yesterday. News Due: An update on the Silica project (Wacker AG) is also due. Plans for exploration on gold and base metal projects in Tasmania.