daytrade diaries... september 30, page-2

Todays Picks

ARM: Further consolidation yesterday with low volume relative to recent times. The chart has another pennant that has formed which has a pole that is 8 cents high. A breakout will see prices above the mid 50’s. This is due to happen in the very near future.

THX: Price action yesterday showed further signs of weakening so I still expect a pull back albeit temporary. As we get closer to the release of assay results from hole TPCDD026 which had a visual estimate was given at 4.5% U308, we should start to see interest build again. I also expect THX to seize the moment and announce what their intentions are in relation to their project which lies next door to Sandfire Resources.

RED: It looks like the retrace is just about done because the price has retreated to the long term trend line. Unless the gold price falls substantially I would expect the price to start heading up from here. A fall below the trendline would probably lead to a closure of the gap at 8.7 cents. I will wait to see confirmation of a bounce before increasing my investment holding.

IMA: There was much more interest yesterday with an increase in volume relative to recent sessions. However there still appears to be plenty of willing sellers at 70 cents. Unless we see further increases in both price and volume in coming days I’ll close the trade out, hopefully at breakeven level.

BGD/BGDO: Steady as she goes however the Bollinger bands have really tightened in recent days hinting we might be close to some action. The discount on the options has narrowed considerably in recent days, also a positive. With updates due any day I expect a sudden pick up in trading. When that occurs I’ll enter for a trade.

OVR: The Annual Report is due out today and I am hoping that we get an update on progress from the company. The price has fallen back to 8.5 on very low volume. This is one of my long term investments and given the lack of action I’ll take it off my list until we see a pick up in activity.

MEU: The price continued its retrace yesterday. I expect the price to fall back to the long term trend line which is about 12.5 cents. The indicators are still negative with the MACD looking like it will cross down in the next day or so. I’ll wait until indicators start to turn up again before taking another trade.

ATI/ATIO: A nice trade yesterday. With the appointment of the ex-FMG executive to the company this one will stay on my radar. I suspect we’ll see further news here in the near term. The chart still looks like there are more increases to come so I’ll be on the lookout for further day trades.

Good luck today.