daytrade diaries ... january 11

Todays Picks

There will be plenty to watch this week as further news comes in on stocks that I am watching closely. Good luck with your trades everybody.

GGP/GGPO: A third gas show, this time over 225m with peak readings of 5,000 units finally got the market interested in GGP. What a difference a day can make on the chart. After Fridays rise the chart looks bullish with the stochastic crossing up, the MACD and RSI both rising. I expect 5 cents to be hit today or tomorrow. With about 550ft to go there should be plenty more news this week possibly as early as this morning. News Due: Further results as the drill hole approaches the target depth of 9000ft followed by results from logging the well. When this is complete we should know whether they will try a production test.

ARM: The stock is consolidating recent gains in the low to mid 90s, however with yet another pennant forming I expect a further move up to start within days. Based on the height of the previous pennant I have a breakout at about 95 cents and a target of $1.22 for ARM in the near term. The market is obviously starting to recognize the potential scale of their manganese discovery. I still expect this to be one of the stocks of 2010, even from these levels. News Due: Details of upcoming drilling program, further sampling results from fieldwork.

BCC: Drilling of the Lee county well is scheduled to start up again today (US time) so this week will be interesting for BCC. They are due to enter the target zones early this week so it shouldnt take too long before results begin to flow. With the stochastic about to cross and the MACD rising (RSI flat) it looks likely that BCC could be at the start of its next move up. News Due: Results from first well at the Lee County project are likely to come in during this week. Confirmation of a successful ramp up of pompano gas production to the target level of 8-10mmcf/day.

UEQ: It has been a long time coming but Friday saw a substantial increase in volume (562K traded) and a close at the days highs. In fact the UEQ got a very bullish Marubozu candlestick on the chart which showed the buyers in control for the day. The chart looks fantastic wth all indicators looking bullist in the short term. I expect a fairly quick move up to the 20-25 cent range from here. News Due: Details of upcoming exploration program particularly at Narbarlek. Update on progress of negotiations for the establishment of the first Phosenergy project.

AQR: The price retraced late Friday which is not surprising since this run began from under 10 cents only a few sessions ago. I had some very nice trading profits from the stock on Friday but it will be firmly on my radar this week as further assay results are due. I will watch closely today for an opportunity to reenter close to 20 cents. I expect further falls early today as the T+3 traders exit from positions taken following the announcement last Wednesday (Wednesdays trades are due to settle today). The chart looks overbought so caution is required but there should be some good trading opportunities here when the dust settles. News Due: Further assay results for the deeper part of the initial diamond drill hole 94D at the Whitewash South. Based on visuals these results should be good. Assay results from 95D and 96D are also yet to come.

MHM: From next Monday MHM should begin to make profits at the rate of $230K per month from its newly acquired Aluminium Salt Slag plant outside of Geelong. This figure will increase when the upgrade of the plant is completed in the second quarter. I think we will see the price begin to firm up this week in the lead up to an announcement on Friday or Monday. News Due: Settlement of the Aluminium Salt Slag plant acquisition is due on the 15the so we should see an announcement in this regard this Friday or next Monday. Remember they should start making money the next day. An update on the Silica project (Wacker AG) is also due.

I am back full time for the next two weeks before taking a week off trading for a break in Cairns with the family. It was an exceptional start to the year with all four of my top stocks recording decent gains (ARM +24.3%, CCU +14.9%, MHM +7.7% and UEQ +6.3%)