Tuesday, October 18, 2011

Stock Analysis 10/18

Dow Jones is down by nearly 250 points. NASDAQ, S&P 500, and gold are down as well. Basically, almost everything is down. This could be the long awaited correction that we are looking at. Dow has surged significantly over the past few days.

Below is the chart of PHISIX.


PHISIX has just broken past its support which may indicate some bullishness. However, because PHISIX, just like Dow, has been surging for the past few weeks, it may correct along with Dow. Worst case scenario is PHISIX going back down to fill the gap at 3900 levels (encircled). Should we be worried? Personally, there is nothing to be worried about. The market has gained some strength to push it back up. What we may experience is just a mere correction. PHISIX's MACD and RSI are far from overbought and are indicating bullishness.

What should we do? If PHISIX will show some weakness, either we'll hold on to our shares or sell it and buy back lower.

My stock pick for today is MA. MA has exhibited some consistency.


The chart above shows that MA has been rising slowly but consistently. Good thing is that it has broken past its resistance at 0.06 and both MACD and RSI aren't indicating some bearishness. If we may recall, MA wen't up by 10% and its RSI still haven't reached 50 which indicates that there is still a very huge room to grow. What's with MA? There is really nothing so serious about MA right now aside from its chart pattern and price action. MA moves with LC and this is a good stock to pick until March when Goldfields makes its final payment on Lepanto. Why MA over LC? Because MA is way, way cheaper than LC. P2 can buy roughly just a share of LC or LCB but can buy more or less 33 shares of MA or MAB. That's some penny stock earning power there.

Other stocks to look at are PX, the hyped IP-CLOUD-LR-BEL-DFNN tandem, and the future wonder stock LIHC.

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