Day Trader column for June 21 - 2019

Last week saw our market move up strongly with the All Ords closing the week above 6,600 and then the close on Wednesday at 6,728 puts the All Ords just 150 points below its all-time high of 6,873 reached in August 2007.

We are seeing stocks across the board beginning to move up strongly as the portfolio is attesting to.    Larger cap stocks have been moving and there is increasing activity in the lower priced stocks.   However, it appears many companies at the low end are taking advantage of the price surges to raise capital.    This is seen as a price surge then an announcement re the capital raising after which the price invariably falls.   The fall will often be severe enough to trigger my stops.   And as usually happens the issue is below the current market price which leads to a dilution of the share price which can take a long time to recover from.    I find it best to sell and look for other opportunities.

The past week has been a busy week

 

In last week’s column I said I bought 150,000 shares in Celsius Resources (CLA) on June 13.   I paid 5c per share for a total of $7,520 including brokerage.   The initial target was around 7c and the price did move up quickly to a high of 6.8c and the next day saw the price fall steeply to close at 5.1c forming a daily pivot point.    As a result I sold the next day at 4.9c for a total of $7,330.    In hindsight I should have had a sell order in the market just below the 7c level.

NVOI Ltd (NVO) closed below its stop on June 14 and was sold on Monday this week at 1.1c for a total of $2,180.

As per last week’s column I bought 50,000 Resapp Health (RAP) on June 13 and I paid 18c per share for a total of $9,020.   The initial stop is 16c and the target  26c which is a projection of the pattern formed since late April and is also the spike high formed in October 2018.  

On Wednesday this week I bought 15,000 Orthocell Ltd (OCC) at 47.5c for a total of $7,145 .   The initial stop is 36.5c and the target is around 70c the highs formed in mid-May.

I bought 4,000 Lynas Corporation (LYC) yesterday.   Details in next week column.

Yes… next weeks column will be the last “Day Trader” column in the Herald Sun, but I am looking to continue the column on a subscription basis on my website  www.thedaytrader.com.au.    I am also looking to run a workshop in Melbourne in late July, limited to a small number of traders.    To register interest also go to the website and enter your details in the “Register Here” tab and details will be sent out as soon as dates and prices are finalised.

As you will be aware by my recent increased trading activity, I believe we are about to see a big move up in our market which looks set to continue for some months to come.

This strength is bourne out by the recent gains in the portfolio.

 

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 19 – 2019

 

Stock

No. of Shares

Purchase price

Stop

Wednesday Close

PNV

10,000

94c

$1.175

$1.395

DUB

5,000

99.5c

$1.12

$1.545

NET

100,000

9.9c

9.2c

11.5c

RHP

8,000

$2.32

$2.27

$2.98

RAP

50,000

18c

16c

19c

OCC

15,000

47.5c

36.5

49c

 

Cash       $360,094

Shares    $73,865

Total       $433,959