daytrade diaries... november 30, page-2

Well the American markets pretty much behaved as I expected with the initial lows followed by a strong recovery which resulted in the market closing down by only 1.5%, a much better result than most had expected. Tonight’s trading on Wall Street will be the real litmus test for the markets since the Dubai default, with a return to normal trading on the NYSE. Personally I don’t expect the events in Dubai to be the catalyst for major falls in the US but I also don’t expect the markets have much upside left either. Caution is definitely the predominant theme in my trading at the moment. Have a great week everyone and good luck.

Today’s Picks
BCC/BCCO: I suspect we’ll see an announcement confirming the spud of the Lee County well when the stock comes out of the trading halt. Personally I think this is an opportune time to be raising capital because the price should be well supported by positive news in coming weeks, assuming that the drilling results in success. I have also heard that this is not your average capital raising to “sophisticated investors” which, if confirmed, should make current holders very happy. I will be looking to buy some more BCCO’s on any weakness when they return to the boards. News Due: Confirmation that the Pompano well has increased production to its target range of 8-10 mmcf/day. Spud of Lee County Well due on 26th of November (Australian Time).

ADN: The director selling raised serious concerns for me because I do not like holding shares where any director is selling stock. However following conversations with two directors I am satisfied with the reasons given and therefore will make an exception in this case. I have been told there is no more selling to come so that also puts my mind at ease. I can also confirm that the first drill cores have now hit the lab so we are still on track for news in the first half of December. The potential for substantial capital growth in the next two weeks is outstanding and I’ll look to buy more under 30 cents early this week. News Due: Assay results due in early to mid December from the diamond drill hole at Rover 1 next to Westgold resources discovery. Indications are the grades will be very good.

RED: One of the few stocks to rise on Friday however the weakness in gold price overnight will be a test for this and all gold stocks this morning (in AUD terms the gold price has actually risen in the past few days due to the weakening Australian dollar). I expect initial weakness in RED share to be followed by bargain hunting as people take positions ahead of news on financing which must be due soon. News Due: Progress on financing for the Siana gold project in the Philippines and drilling results on the Mapawa project.

ATI/ATIO: One of the few stocks to buck the severe downtrend on Friday. Michael Minosora was officially voted in as AGM at the AGM so I think we can expect things to heat up from here. ATIO provide the best entry here because you can currently buy them at a discount to the shares even including the 0.8 cents exercise price. News Due: Detailed update on the Vietnam Bauxite project. Details concerning new project acquisitions.

PNX: I managed to pick up a few shares at 18 cents on Friday and still have an order outstanding in the system which I’ll be looking to fill this week. On the chart we just missed out on a bullish dragonfly doij pattern on Friday but the candle still clearly showed that the selling early in the day didn’t gather momentum which meant the buyers started to gain the upper hand by the close. There may be a few T+3er’s from last Thursday’s rise to come out on Monday and Tuesday which is when I’ll be looking to pick up more stock. News Due: Commencement of drilling program at various projects.