FED MAINTAINS $85 BILLION MONTHLY PACE OF BOND BUYING FED SAYS LABOR MARKET SHOWS `FURTHER IMPROVEMENT’ FED SAYS DOWNSIDE RISKS DIMINISHED SINCE AUTUMN BULLARD, GEORGE DISSENT FROM FOMC STATEMENT Pre-FOMC: S&P 500 Futs 1645, 10Y 2.21%, USDJPY 95.25, Gold $1375, Oil $98.50 Let’s see how the market reacts. So far there’s been a battle over this 1645 level, let’s see which side prevails.
LPTH (LightPath Technologies, Inc.) trades on the Nasdaq and has recently been trying to consolidate it’s gains after that big rally from the .80s up to $1.50. Personally I’ll be watching to see if the price can get above and hold the 1.30 level, as well as keeping an eye out for a healthy spike back up in the volume department. If we see those two play out, my guess is we’ll see another leg up.
JSDA (Jones Soda Co.) trades on the OTC Market and has recently seen it’s first extended uptrend in at least three years. It’s been steadily pushing higher and forming higher highs and higher lows, but I think this potential breakout @ the .65 resistance level could yield it’s most explosive rally of the year. Like always the key will be whether or not enough buying volume can come in to push the stock into a sustainable breakout mode, and in JSDA’s case I’d like to
AMD (Advanced Micro Devices, Inc.) trading on the NYSE had a major rally in May and has since leveled off, pulled back a bit, and consolidated it’s gains. In chart pattern language that’s a drawn out way to say it’s formed a bullish flag, which means there’s a decent probability of another leg up coming in the not too distant future.
The market hasn’t been very friendly to most things golden for quite some time now, but the opportunist and contrarian in me wants to use this bearish sentiment to do some window shopping for potential bargains out there. I did a quick scan of the gold and gold mining plays in the penny stock world and noticed that more than a few have been showing signs of forming bottoming patterns. I see some inverse head and shoulders, some double bottoms, and a couple of them
DSNY (Destiny Media Technologies Inc.) trades on the OTC market and currently has been in the process of breaking out to new highs not seen since 2000. When you’re talking about a breakout on this time frame the upside potential is pretty ridiculous, but don’t let that blind you into thinking it’s an easy trade. The current resistance and breakout point is right here in the mid 1.20s, but it’s not a clear confirmed breakout yet.
GORO (Gold Resource Corp) trades on the Amex and has been stuck in a nasty downtrend since it gapped down and crashed back almost a year ago. It’s worth noting though that May’s low failed to crack below April’s low, and now the price is testing the high point between those two bottoms. A successful break of this ceiling in the low $10s would imply a confirmed double bottom pattern and a good probability for some momentum to the upside.
Here’s a strong looking chart that never made it on to my weekend watchlist. GSAT recently broke through some major resistance here in late May and early June, and now after some consolidation I think the signs are starting to indicate that the momentum is going to start pouring in again. There’s already a slight uptick in volume on the day and the stock is hovering just in the green (so that’s a nice start), but confirmation of my hunch will come when we see
Oil seems to be trading relatively very strong as of late with the recent trading sessions hovering right at it’s almost four month high point, and a break of this consolidation range’s ceiling (say $35) could be the trigger for a significant breakout. Remember that oil has traded in a very tight range (compared to it’s historical price range) for the past four years so it’s coiled up tightly and the potential for an eventual major rally is (by my estimations) pretty high. If you’re
Just a heads up that the SPY is testing some key support to a six month old ascending price channel, and if the market doesn’t like what comes out of this week’s FOMC meeting, then we could see that breakdown and the markets sell off. Up or down, no one knows for sure where it’s going to head, but it’s at a very pivotal point and should be watched closely. Keep an eye on that ascending trendline as well as the 50 day moving average,