Day Trader column for January 12 - 2018

 

First off today I must apologize for any confusion over the column during the past three weeks.    Due to space constraints the column before Christmas was not printed and last week it appeared in Saturday’s paper.    However, if you missed them and want to catch up, they can be found at the Day Trader website www.thedaytrader.com.au.     From here on we should be back on track.

Last week the All Ords made a decisive break above 6,200, but there was a divergence between the S&P/ASX 200 and the SPI contract indicating a likely pullback.    But as they both traded above the mid December spike high on Monday it negated any real damage likely from the divergence, but we will likely see a daily pullback, and this was evident on Wednesday when the All Ords closed the day at 6,205.    I expect the pullback to be short term.

Australian Vanadium (AVL) is a small stock I have been watching, which has been quietly trading along the bottom since 2008 and then some volume came in, in 2014.   It has been trading between point seven cents and three cents since then.   At the end of November 2017 it traded up to 2.5c and pulled back to form a spike low at 1.6c (the highest spike low for several months).     It then consolidated just below 2.0c until it broke above this range last Friday and I bought 250,000 shares at 2.4c on Monday for a total of $6,020.     The initial stop is 1.9c which is the low of the recent consolidation.     As far as targets go, it is my intention to hold this stock and once it moves up, so my stop is above break even, I will give it some leeway as there is the potential for it to move up a long way.    It would be expensive to buy the above number of shares if I sold it and did not get another entry point until it was above 20  or 30 cents where it would meet strong resistance, if it does continue to move higher.

On Monday I also bought 80,000 Lepidico (LPD) at 6.2c for a total of $4,980 including brokerage.     The initial stop is 4.8c which I will to raise to 5.9c as soon as it consolidates above the the past couple of weeks trading.    I am not looking to hold LPD for any length of time and will sell around 16c if it moves that far.    16c is a strong resistance level.

As of Wednesday Helix Resources (HLX) may well break its stop this week and if so it will be sold and the details will be in next week’s column.

As of close of trade on Wednesday Aeon Metals (AML) closed at 28c which was one cent below its stop and it was sold on Thursday and those details will also be in next week’s column.

 

 

 

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

Portfolio Position as at close of trade on January 10 - 2018

 

 

Stock

No. of Shares

Purchase price

Stop

Wednesdays Close

AJM

60,000

27.25c

39c

47c

BIG

5,000

$1.735

$3.18

$3.31

AUZ

300,000

2.3c

9.6c

12.5c

AML

25,000

20c

29c

28c

WHC

3,000

$3.68

$4.35

$4.67

LIT

50,000

20.5c

19.5c

20c

PLS

10,000

86c

$1.09

$1.22

QBL

150,000

3.1c

4.7c

6.7c

A2M

3,000

$7.13

$7.01

$7.35

LKE

25,000

24.5c

25c

27.5c

AMI

20,000

30c

26.5c

31c

CT1

150,000

3.3c

2.8c

4c

HLX

100,000

5c

3.5c

4.1c

AVL

250,000

2.4c

1.9c

3.2c

LPD

80,000

6.2c

4.8c

6.2c

 

Cash       $241,137

Shares    $193,320

Total       $434,457