Weekly Commentary

How many more weeks can the DOW post new 52 week highs? OMG! If the last two overbought durations is an indication, then we should be in for a pull on the DOW this week. I think everybody is calling for a pull or has been calling for a pull now for a while and we're just not seeing it. I was so sure last week we were going to see more of a pull than we did that I went counter trend on several trades and it was not the right thing to do! It just kept on going and going and going... Even the Energizer Bunny runs out of juice at one point or another, but I guess the DOW is running on special batteries, FED Batteries! They only run out when they can hurt the most people who are now heading back into the markets with the precious metals weakness and the excitement in commodities lately.

On the Forex front, last Monday I thought we'd see a down week in the price of Crude Oil and we'd be seeing $88.50 soon. I was pretty darn close with my call as the low of the week was $88.46 on Friday and it closed at $88.97 for the week. On my daily chart it now looks as if its going to paint an Inverted Head and Shoulders pattern if it holds a close of $88.50 or higher. However, I think its more likely that Price of Oil will be heading south and going to touch my bottom trend line this week. This should place it around $86.50 to $87.00.

The Euro is sitting right now on support at $1.3584 and I expect more weakness in it this week as well. Next support level is at $1.3450 followed by $1.3250 which are my targets on the Euro next week. Watch the direction of the US Dollar Index and how DOW is doing. This should give you a good sense in which direction the Euro is going to head. Any failure in the DOW and you'll start to see the US$ raise and this will cause the Euro to drop.

Two more Successful Trades have been posted on the website last week as I closed positions in Twin Butte Energy (TSX: TBE) and Great Panther Silver (TSX: GPR). I've also added a Social Chat (or comments) area that you can post on. I'd love to hear your comments and thoughts on stocks or just general chitchatter. You can find it under the HOME menu option by placing your mouse just over the HOME button.

The second course is coming along nicely and should be completed within a few weeks. This course will be all about chart patterns, how to identify them and how to trade them. Its a continuation of the first course and if you have not taken advantage of the special pricing I had on it, you'd better act now! When I launch the second course, I will no longer be offering the 50% discount on the Fundamentals of Technical Analysis course.

I also received last week my thrid shipment of Chart Pattern Flash Cards and these just keep going out the door as fast as I can get them in! They are great to help you identify chart patterns when doing your daily or weekly scans.

Cheers and have a great trading week!

Brigus Gold Corp. (TSX: BRD)

Brigus Gold is now back on the radar from my last call of it in the November 29th newsletter where suggested an entry at $1.69 with its target being the top trend line around $2.05 at that time. It hit a high of $2.15 before starting to pull back and has returned to the support like where I suggested the entry. Time for a re-run? LOL! Indicators have started to turn upwards again and I think this time we are going to be forming a Cup and Handle formation. What we should see develop here is the right side of the cup. The play this time would be about the same, entry at this level with a target of $2.10 to complete the cup portion. Stop loss should be placed just below the support like or around $1.58 to $1.55.

Canada Lithium Corp. (TSX: CLQ)

Another one that's oversold and appears ready for a turn around. It has returned to it lower trend line from a nice run to $2.23 with a close of $1.41 on Friday, which is more than I would have liked to have seen as a pull back after that run. What we may be seeing developping is a slanted Head and Shoulders formation with the top of the right shoulder at $1.80 (top trend line high). So as such, I'm not quite ready to put a high target past that for now. Entry at $1.41 or pehaps a little lower if you can get it, with a stop loss just below Friday's candle, say at $1.30. First target for now is $1.80 for gains of 27.6%. Once it reaches that target, we can re-evaluate the position and decide if its good for another 20% or not depending on the indicators.

First Uranium Corporation (TSX: FIU)

Although the perfect entry would have been the hangman candle at $0.99 or even the 200SMA, I don't think this play is over yet and there's still room for another 10 to 15% gains. First target is the next resistance line at $1.27 for small gains of 10.4%, then possibly $1.36 for gains of 18.2%. I just wish I would have noticed it before its move above the now support line at $1.08, however if U308 prices continue to go up, we may still flip this one for some small gains this week.

Arian Silver Corporation (TSX-V: AGQ)

Here's a Silver company that came up on my scans as oversold and when I did the chart on it, it's about to break out of its current down trend. It has had a good run recently and you'd expect it to pull a little. Volume on Friday was above average and the indicators have turned upwards from that action. It has minor resistance at $0.77 and should be able to re-challenge its recent high of $0.89. I would still put a short stop loss on it though. If it doesn't break out of the down trend, I would bail out of it for now and wait for further direction in it. So entry now at $0.72 with first target at $0.80 for gains of 11.1% followed by $0.89 for gains of 23.6%.

Canacol Energy Ltd. (TSX-V: CNE)

I'm placing Canacol Energy on the watch list for now as it has not yet broken out of the short term downwards trend line but the increase in volume last week seems to be more accumulation than selling of the stock. Yes it did drop from $1.60 to $1.40 but that's hardly a reason to mass exit the stock and the bounce from the support line adds to that thinking. So for now I'm placing it on a watch list with an alert if it closes above the trend line. Alternatively, one could take a position here at $1.52 with a stop loss below the long term upwards trend line which is now above support. First target is the upper resistance line at $1.80 for gains of 18.4%. If it does head north on us and goes for the $1.80 level again, we can probably expect more of it to the $2.00 range. Let's start with this 18% and we'll worry about the other 11% once we get there!

Sirona Biochem Corp. (TSX-V: SBM)

I certainly didn't expect to see Sirona drop so much after that run to $0.84 and I know many of you are still in it and have been averaging down with it (as have I). I think at this point we have reached bottom with all indicators in the oversold and volume that has steadily been dropping. There's not much of a pop on the right side of the chart but it looks like it completed a Head and Shoulders formation. If that is indeed the case, we can expect a second run up to at least the next resistance line at $0.49 where this story all began! Here's to hoping... The float on this stock is very thin and it could move up very quickly again. There is still the news of the acquisition of the French company that they need to complete and announce which will give them a European distribution channel. I'll be holding onto this stock until I hear that news and its price action.