daytrades april 12 pre-market, page-2

This Weeks Picks

Market Direction: The ASX is likely to be strong again today after yet another positive lead from Wall Street on Friday. Seven of the last eight weeks have been green in the US. Because of this I plan to take some money off the table this week as I believe we are way overdue for a decent sized correction. This week sees the release of a myriad of important US economic data including the trade balance on Tuesday at 10:30pm, retail sales on Wednesday at 10:30pm, weekly unemployment claims on Thursday at 10:30pm, the Philly Fed Manufacturing Index on Friday at 12:00am, building permits on Friday at 10:30pm and finally, the Preliminary UoM Consumer Sentiment at 11:55pm on Friday. Chinese GDP figures for the March quarter come out on Thursday at 12:00pm and will provide a good indication of whether the global recovery is gaining strength. FOMC chairman Ben Bernanke is also due to testify about the economic outlook before the Joint Economic Committee of Congress at 12:00am on Thursday and replies to questions without notice could move the markets. Earnings season in the US also kicks off this week with some big names reporting including Alcoa, General Electric, Google and Intel.

Sectors of Interest: Gold continues to shine, up another $10 in the US on Friday night. As was discussed last week, the price has broken out of an inverted head and shoulders pattern and looks headed for a new all time high of around $1,230. Given the rising price you can understand why gold stocks are currently regular features in my daily and weekly selections.

ARM: Friday's trade was significant in terms of the price finally breaking out to the upside from a long period of consolidation on volume which was the highest in nearly four weeks. The chart now looks bullish with the slow stochastic rising, the MACD having crossed late last week (now sitting above zero) and the RSI rising through 50. With drilling scheduled to start this week I expect strong demand for stock to push prices towards the all time high of $1.26 in the near future. News Due: Commencement of drilling operations at the Capricorn South East Manganese Project. Disclosure: Holding ARM

CVY: Last week was excellent for CVY with a steady appreciation in the share price. Friday saw a new high for this rally of 24.5 cents reached. I expect 25 cents to be hit as early as today followed by a small retrace and then hopefully another (third) attempt at breaking through 25 cents on its way to the next resistance level of 30 cents. News Due: Drilling results from the Ardeen Gold Project in Canada. Completion of the institutional component of the placement at 22 cents per share. Conceptual studies into underground mining at Cameron Lake. Disclosure: Holding CVY

PEN/PENOA: The release of offer documents for the current capital raising was probably the main reason for the sell off late last week. I expect some further weakness in the short term as some of the placement stock finds its way onto the market. However, with the initial JORC calculation due out this month any weakness should be short lived. I'll be on the lookout for a substantial increase in volume as a sign that people are taking more significant positions ahead of the news, which should be very positive for the share price when it comes. News Due: Further drilling results from the Ross Project where 4 drilling rigs are currently operating. Initial JORC from the Lance project is due in April Holding PENOA

OVR: This was a star performer for me last week. I expect prices to test 12.5 cents as early as this morning. I believe after this that there is likely to be a retrace to test 11.0 or even 10.0 cents again before a more decisive move through 12.5 cents occurs. If 12.5 cents does get broken, and that is a possibility given the low free float of 36m shares outside the top 20, then the next significant resistance level is 30 cents. On the chart Friday's Marubozu candle indicates that the buyers were in control all day and bodes well for further rises today. The slow stochastic, MACD and RSI are all rising strongly on very high volume meaning that the current strong uptrend should have further to run. News Due: Details of the exploration program for 2010 at the Yukon Base Metals Project in the Yukon, Canada. Disclosure: Holding OVR

PNX: Last Thursday's announcement about drilling results from the Black Hill Gold Project provided some clues about upcoming assay results. "The results to date are extremely encouraging with visible malachite seen in most holes". Some significant 100K buys went through last Friday and the chart looks bullish with a near term target of 25 cents. Speculation about upcoming results should hopefully see that price being reached soon. News Due: Assay results from first six holes at the Princess Royal Copper Project. Disclosure: Holding PNX

BCN/BCNOA: With gold up strongly and a great close on Friday afternoon I think BCN should break through 3 cents this morning. The slow stochastic is rising strongly, the MACD looks set to cross today and the RSI rose through 50 last Friday. Drilling results are due now and with the chart looking the best it has for some time I think BCN should perform well this week. News Due: Drilling results from the Barlee Gold Project, . Disclosure: Holding BCNOA

MEU: News that MOX has elected to retain its 50% interest in the Melton Copper Gold Project should be viewed with optimism. Given drilling has been underway since the start of March, results can't be too far away. The company has plenty of cash on hand to fund further exploration thanks to capital raisings late last year, however the register needs an overhaul before sustained rises are achieved. Positive drilling results could provide the impetus for that overhaul to occur. News Due: Drilling results from the 10 hole initial drilling program at the Melton Copper Gold Project which is located next to Rex Mineral's Hillside project. Disclosure: Holding MEU


Good Luck with your trading this week.