Stocks to WatchARM: ARM will come back from suspension today or...

Stocks to Watch

ARM: ARM will come back from suspension today or tomorrow with a strong buy recommendation from Fat Prophets at 44 cents. Hopefully a resumption of the uptrend will commence soon.

THX: Well no pull back occurred and on Friday the price rallied strongly in an extremely weak market. It was certainly an impressive performance and suggests something is coming, perhaps the assay results from TPCDD026. I wonder if the visual assays (4.5m @ 11% U308) were on the low side; recent price action suggests that is the case.

RED: Nearly a Doji on Fridfay but no cigar. I now expect RED to close the gap down to 8.7 cents given we are so close. I still have my order in at 8.8 cents.

BGD/BGDO: Price broke down at the end of last week. There are now small 0.5 cent gaps on the chart at 17.5 and 18 cents. I suspect there will be a decent trade here shortly as news gets closer and I’ll be on the lookout for signs of impending action.

CTP / CTPO: I sold out of my options on open Thursday morning after reading the announcement. The farm in partner was a small ASX minnow, Red Sky Energy. Had it been a major I would have stayed longer. However CTP stays firmly on my list as a good trading stock.

MEU: Friday gave signs that the retrace may be done especially since such a terrible day failed to attract new sellers. I’ll be watching closely for a potential entry this week.

ATI/ATIO: Following the recent run indicators are signaling a period of consolidation may be upon us.

NWE: I watched with interest on Friday but will be looking to trade this again during this week.

MHM/MHMO: I traded both on Friday however sold out to early on the heads. It is a story worth keeping an eye on.

DDT: I suspect there will be some trades in this today and will be keeping a close eye on it. A word of caution is needed because the company only had $1m in the bank at the end of August. Looking at the announcements last Friday I think it is clear that the company is really trying to raise the profile of the company which may precede a capital raising of some sort.

It is important to be careful in the current environment. I think the signals for a double dip recession in the US are growing stronger and therefore I expect more turbulent times for markets in the months ahead. For this reason I’ll generally only hold my investment stocks overnight (currently ARM, IFS, OVR and RED) unless I see an outstanding risk / reward opportunity for an overnight hold and I know that no major economic data is coming out of the US.

Good luck today.