Day Trader column for December 8 - 2017

The All Ords, S&P/ASX 200 and the SPI futures contracts all had a relatively calm week last week and all ended the week slightly higher than the week before and the SPI was still trading at a premium to the S&P/ASX 200 indicating all was looking good.    However all three closed on Wednesday slightly lower than last week’s respective lows.    The SPI still remained several points above the S&P/ASX 200 indicating to me the market still remains positive.

The only stock in the portfolio which closed higher on Wednesday than the previous week was Aeon Metals (AML) and Australian Mines (AUZ) was square for the week.    The balance were all lower and some are still below their listed stop levels.

I am still holding most stocks despite some having broken their stops, as I am still working on how I want to place stops when stocks have moved in a transitioning market and volatility causes quite large moves both up and down.

If it turns out the stocks in question do not recover, it will be an expensive lesson and teach me to take profit in all cases when targets are reached even if higher targets are predicted after consolidation.

The three stocks I noted as being watched last week are still in play, but I have not bought them as yet, as two of them have pulled back with the rest of the stocks I am holding.  However, I will look to buy if they reverse the slow pullback and form pivot point buy signals before breaking support.    Rimfire Resources (RIM) is the only one to have moved up from its recent low, but will need to close above three cents for a daily pivot point to form.

I will try to explain why and where some stock held will likely reverse the recent moves down from their respective recent highs.

The A2 Milk Company (A2M) has been slowly moving back from its $8.05 high on reduced volume for the past two weeks, and I am expecting it to begin the next move up before it reaches its strong support around $7.00.    It may have reversed on Wednesday and if that is the case then it should be confirmed by today.

Big Un (BIG) has pulled back from the strong move up on November 29 and it too may have reversed that pullback on Wednesday and that too should be confirmed by today.

Queensland Bauxite (QBL) had a big move up to 9.7c over the past week and reversed on Tuesday and closed on Wednesday at 07c.   It seems to have found support around 6.5c, where it reversed on Wednesday and if this is the case then I expect the next move should see it reach its next target around 13c.

The recent spike low of 35.5c will be the critical level for Altura Mining (AJM).    A break of that level would likely see it fall to the next support at 30c.

Artemis Resources (ARV) was sold yesterday after it broke below 27.5c.

 

 

 

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 06 - 2017.

 

Stock

No. of Shares

Purchase price

Stop

Wednesdays Close

AJM

60,000

27.25c

35.5c

36.5c

ARV

25,000

24c

39.5c

27c

BIG

5,000

$1.735

$3.18

$3.69

AUZ

300,000

2.3c

9.6c

9.1c

AML

25,000

20c

20.5c

32c

WHC

3,000

$3.68

$3.90

$3.81

LIT

50,000

20.5c

19.5c

16c

PLS

10,000

86c

82.5c

92.5c

QBL

150,000

3.1c

4.7c

7.c

A2M

3,000

$7.13

$7.01

$7.36

 

Cash       $268,187

Shares    $143,210

Total       $411,397