despite almost a universal agreement the market is long overdue for a pullback, the rally still continues on into a 7th month, as long as the momentum continues to the upside, trading conditions continue to throw up excellent opportunities every day.
although increased caution needs to be taken as some stocks have now run way to far to quickly.
in terms trading themes for today, the fact Alcoa significantly beat earnings expectations after the bell in the US will likely be a boost for the commodity sector.
the spec gold sector will continue to be the focus of traders as long as the gold price remains at record levels, as was seen yesterday with several companies exploding higher on the back of exploration results.
an interesting trade might be seeking out companies that have gold exploration results due, as in this trading environment any gold related announcement is likely to be well received, below are a couple of stocks that are currently awaiting results.
GOA - currently in the progress of developing their high grade Brazilian deposit, which recently uncovered further high grade veins, would expect further news shortly.
ERM - news well overdue from their N.T exploration campaign, the shareprice has moved pretty hard so caution needs to be taken.
RAU - would expect further trenching results from Bolivia, with recent grades as high as 127g/t over 5 metres, look for increased volume as a dead giveaway news is close.
volume is the key for these spec stocks, so keep an eye on early volume it is a great indicator to which stocks "will be in play" for the day.
