daytrade diaries... october 7, page-4

Todays Picks
ARM: Well after a few days on the sidelines ARM started trading well but mid afternoon someone decided to sell 300K shares at market which drove the price down to the days lows of 44 cents where it closed. That sets up a potential double top scenario at 48 cents in the short term. For those not yet on board this means a retrace is likely with first support at 38 cents followed by 32 cents. Personally I think 38 cents will hold, and the price may not even get there because more sampling results are due and again they’ll probably bring a focus back onto the potential of the manganese project. What today did show for me was that more work needs to be done in the forties before heading off towards the all time highs in the mid sixties.

CCU: A solid performance yesterday with volume picking up as the day wore on. I bought a further 150K at 15 cents as a trade and sold them later at 16/16.5 cents. I am very impressed with CCU’s prospects and will continue to accumulate more stock.

MHM/MHMO: An update was provided by the company yesterday and initially generated some positive interest. However after initial enthusiasm the stock fell and is now likely to head back towards 20 cents in my opinion.

BCC/BCCO: Well following what I thought was a very positive announcement the period of consolidation played out with a fall to just above 5 cents. I personally thought the announcement was very positive and think the selling was overdone. Therefore I’ll look closely at BCC for trading opportunities today however I believe that the gap down to 4.5 cents will be closed and I will place my order accordingly.

NWE: A very powerful day yesterday and I managed to get a couple of winning trades on. Given my current cautious mood I closed out all trading positions so I’ll reconsider buying on open this morning for another trade.

RED: Well the gap down to 8.7 cents looks gone now unless we have a meltdown in the markets or a collapse in the gold price, which seems unlikely. The price rose during the day and managed to close at the days high of 11 cents. Once again there were games being played with the market depth with a 5m bid at 9.6 cents at one stage. I think RED is about to move strongly upwards and the gold price move last night could be the fuel required. I suspect I’ll be buying some traders today.

GOA/GOAOA: Will watch closely after the recent retrace and the move up in the gold price overnight.

Good luck trading today.