Todays Picks ARM: A big day for ARM today, returning to the boards with a strong buy recommendation from Fat Prophets at 44 cents. It will be interesting to see what level of buying interest this generates amongst their membership. We also have further news out about a “Ground breaking heritage agreement”. This clears the way for an aggressive exploration program to begin which is fantastic news and a very significant milestone for the company.
ATI/ATIO: Looks to be pausing after a run up from 1 cent to over 4 cents. Awaiting details of the new MD’s plans for the company, but certainly one to keep an eye on.
CCU: I decided to add CCU to my investment stocks (one of five) yesterday after viewing a very bullish video on silver over the weekend. I also reviewed their recent presentation and concluded there is significant upside in CCU. Their resource is large (44m oz silver) and they are one of only a few pure silver plays on the ASX. I’ll follow their feasibility study with interest.
MHM/MHMO: The price held up surprisingly well yesterday with a strong open followed by a move to 35 cents. However the price closed near the days lows and after such a strong run I expect there are further falls to come.
BCC/BCCO: I managed to make up for a losing trade on BCC last week with a winning trade on BCCO yesterday. However after studying the historical chart I concluded that there will be some consolidation around the 5.5-6.5 level before the next move up.
NWE: Consolidated recent gains yesterday following a retrace from above 4 cents. I’ll be watching this one closely today for an entry.
THX: Held up well yesterday with the price now up 132% since I first included THX on my daily list. The assay results from hole TPCDD026 should provide more fuel to increase the price further. However after the stellar run I have decided to watch from the sidelines for now.
MEU: The price seems to have reached a new level of support with very little volume going through. I’ll wait for an increase in price / volume activity as a signal for a trade.
RED: Tantalisingly close to filling the gap at 8.7 but unlikely to happen today with the gold price being up strongly overnight. I am still waiting with an order at 8.8 cents.
Trading Tip I generally try to pick a maximum of two day trading stocks that I will focus on. I review many opportunities prior to 10am but try to identify those with the greatest probability of success based on technical and fundamental information at hand. Yesterday my choice was BCC. On Friday it was MHM/MHMO and NWE. Of course I add stocks during the day based on news releases which companies put out.
What I find is that by focusing on a couple of opportunities I quickly become familiar with their trading patterns and try to profit from that knowledge.
Anyway overall I’m still super cautious about the market and am not holding any trading stock overnight. I only added CCU to my portfolio yesterday but as a long term hold.
