Day Trader column for June 14 - 2019

Last week saw our markets finally have a positive move to continue the uptrend.   As there is still so much commentary around the economy which is mostly negative it is only to be expected the market is hesitant.    This was evident on Wednesday, when after the clear break on Tuesday to the highest close since the beginning of 2008, the market formed a daily reversal to the downside.    We may have seen the indices consolidate for a couple of days before being ready to move up again next week.   The indices are now within 150 points of their all-time highs.

The next target for the All Ords is 7,500 which is an extension of the pattern formed since August last year.    I am still of the opinion we are about to see our market explode over the next twelve months with a target around 10,000.   This may seem extreme, but a look back at past market blow offs will show the All Ords doubling in the eighteen months prior to a crash.    That is the scenario I believe is developing right now.

Unfortunately, due to restructuring within this newspaper my final column will be printed on June 28.

Over the next two weeks I will list some of the stocks I am looking to trade as the market makes what I believe will be the final run up into the blow off top before the crash.

The use of stops will be paramount to being out of the market when it collapses.    The last time my system had me out of the market before a fall was in September 2007.  

Last Friday I bought 100,000 shares in Netlinkz (NET) at 9.9c for a total of $9,920 including brokerage.    I was stopped out of NET at the end of April and have been watching it consolidate over the past six weeks and on June 06 it finally jumped back up to 10c on increased volume.   The initial stop is 8.4c the most recent daily spike low.    The targets are 15c which is the April high, and when it breaks above that level the target is 22c, then the resistance/target levels are 30c and 40c.

The next was Rhipe (RHP) which I was also recently stopped out of.   I bought 8,000 shares on Tuesday this week at $2.32 for a total of $18,590 including brokerage.  This was after it retested the $2.00 level for the second time since early May and moved up breaking the recent short daily downtrend.   The initial stop is $2.08 and the targets are $3.00 then $3.40.

Resapp Health (RAP) I bought yesterday after two low volume days where it traded in a low range inside and near the top of the range of the previous day.   This occurred after it too had broken above the downtrend of the recent daily decline from 20c.   The details of this trade will be in next weeks column.

150,000 Celsius Resources (CLA) were also bought yesterday and the details will also be in next weeks column.

I am still looking for the big gains in the coming climax of the market bull run to be in the tech, healthcare, energy and resource stocks.

 

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

Portfolio Position as at close of trade on June 12 – 2019

 

Stock

No. of Shares

Purchase price

Stop

Wednesday Close

PNV

10,000

94c

$1.175

$1.27

DUB

5,000

99.5c

$1.12

$1.315

NVO

200,000

1.6c

1.3c

1.4c

NET

100,000

9.9c

8.4c

9.9c

RHP

8,000

$2.32

$2.08

$2.39

 

Cash       $374,299

Shares    $51,145

Total       $425,444