Day Trader column for June 28 - 2019 (Final Published in the Herald Sun)

v

Last week the All Ords inched to within one hundred points of its all-time high so it will be interesting to see if it has a final push to a new high by todays close.   

A double top is always the most precarious point in a market as it often leads to a major fall, particularly if it rapidly runs up to the old high.   In this case the Indices have moved up slowly over a few years and have consolidated between 5,000 and 6,000 for around five years.   With that in mind I expect some consolidation just below the all-time high or a pull back to retest the high if it breaks above the 2007 high.

Some of the recent strength is likely due to institutions and fund managers window dressing their portfolios for the end of financial year to make the figures look good for their year end results.

It is also interesting to note the SPI futures closed on Wednesday seventy points below the index, a level I have not seen for a very long time.    This is potentially a negative although it may be in anticipation of the end of financial year manoeuvring.   We will know today or early next week.    In the meantime it is, as always important to keep stops tight.

I must apologise for not buying Lynas Corporation (LYC) as stated in last weeks column.    Before the market opened, I decided not to jump the gun, but instead wait for a daily pivot point to form.    As of Wednesday that has not happened.   If it does not trade below $2.53 and has a daily close above $2.64 the high of the day the spike low was formed on June 19, that will be my buy signal.

Walkabout Resources (WKT) on the other hand spent three days in a narrow range at the top of a strong move up on June 18.    The big volume increase on the third day of consolidation was one of my classic buy signals, prompting me to buy 20,000 shares at 36.5c on the open the next day.    The initial stop is 34.5c and the target is 60c.

I will continue to write the column and post it on my website   www.thedaytrader.com.au     and it will be posted on a Monday beginning on July 08.    After a period of time this will become a subscription service if there is enough interest.    I am also looking at starting a mentoring service.

In the meantime I am conducting a final workshop on July 13/14 which is restricted to 15 participants.    There are still a few places available and they will be allocated on a first come first served basis.   

I would like to thank you all for your readership over the years and the interactions I have had with many of you.    I wish you all profitable trading and hopefully meet some of you at my last workshop on July 13/14.

 

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 26 – 2019

 

Stock

No. of Shares

Purchase price

Stop

Wednesday Close

PNV

10,000

94c

$1.405

$1.53

DUB

5,000

99.5c

$1.225

$1.38

NET

100,000

9.9c

10.5c

13.5c

RHP

8,000

$2.32

$2.72

$2.96

RAP

50,000

18c

16c

18c

OCC

15,000

47.5c

45.5

53.5c

WKT

20,000

36.5c

34.5c

40.5c

 

Cash       $352,764

Shares    $84,505

Total       $437,269