Day Trader column for December 29 - 2017

 


Our market closed the week before Christmas near its high for the week and it closed above the previous six week sideways move.    As of Wednesday which was a day of indecision in the broader market it does look as though 2017 will close the year near its year high and also near its highest level in ten years.    The recent six week consolidation bodes well for the year ahead as the market heads for its all-time high.


However, as of last Thursday the SPI started trading below the ASX/S&P 200 and on Wednesday this week it was at a discount of around 50 points.    This may be partly due to professional traders taking a break between Christmas and New Year but if not then maybe we can expect a short term market correction.


Artemis Resources (ARV) which was the one stock still below its stop and I, for the first time ever lowered the stop and treated it as a new trade.    As a result I adjusted the stop to 26c and it fell and closed below it on Friday last week.   It was then sold on Wednesday when the market opened for the week at 24.5c.


For the New Year all stocks will now be trading above their respective stops and all is good in my trading world again.


To end the year on a positive note I bought 25,000 Lake Resources (LKE) at 24.5c on Wednesday for a total of $6,145 including brokerage.    The initial stop is 18c, the spike low formed on December 19 and the initial target is 36c, which is a projection of the pattern formed since early November and is also a spike high formed in 2008 during its fall from over 50c to almost zero.   There were several years of bottom trading after the fall until mid 2016 when it woke up to a new life.


I will watch Altura Mining (AJM) closely as new shares were issued re options.


 


I promised last week to list a few stocks to keep on your watch lists and some are closer to buys than others, but they are all set up and will likely trend to the upside.  


Tawana Resources (TAW) is a stock I bought and sold some time back and I missed buying it on Wednesday and will now wait for it to consolidate around 55c.    Global Geoscience (GSC) has also taken off and again I will wait for a consolidation.   


Digitalx (DCC) is also setting up along with Ardent Leisure Group (AAD).


Imdex (IMD) and Mount Gibson Iron (MGX) are worth watching.


BHP and Woolworths (WOW) are also worth watching in the near term.


 


As a rule higher priced stocks take longer to make the same percentage gain but can be played with much larger sums without influencing the market.


 


Finally I hope the year has been good to you and 2018 and beyond brings all your wishes to fruition.     In the meantime enjoy your New Year celebrations and play safe.       HAPPY NEW YEAR


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Past columns, information and DVD’s on my methods are available at:-             www.thedaytrader.com.au             


 


Portfolio Position as at close of trade on December 20 - 2017.


 


Stock

No. of Shares

Purchase price

Stop

Wednesdays Close

AJM

60,000

27.25c

35.5c

40.5c

BIG

5,000

$1.735

$3.18

$3.44

AUZ

300,000

2.3c

9.6c

12.5c

AML

25,000

20c

20.5c

30c

WHC

3,000

$3.68

$3.90

$4.43

LIT

50,000

20.5c

19.5c

20c

PLS

10,000

86c

82.5c

$1.165

QBL

150,000

3.1c

4.7c

6.1c

A2M

3,000

$7.13

$7.01

$7.42

LKE

25,000

24.5c

18c

29.5c


 


Cash       $268,147


Shares    $160,225


Total       $428,372