Day Trader column for March 29 - 2019

Our market continued to trade sideways all last week and in the case of the All Ords this sideways move bounced along just below 6,200.   This week however the SPI futures move down to trade at a discount to the ASX/S&P 200, so this may indicate we have lower lows to come.    The banks continue to drag on the indices, so we will need to see them strengthen up for the market to really clear the current support/resistance levels.

In the meantime three 0f my stocks got caught up in the weakness and were stopped out.   All up it resulted in the first significant weekly fall for some time as the portfolio value dropped by around $2,000.

Some other stocks managed to hold their own for the week and two actually broke out and began their respective moves to the upside.

Rhipe (RHP) closed below its stop on Thursday last week and was sold the next day at $1.69 for a total of $13,490 including brokerage.    It did bounce back on Friday and was moving back down slowly by Wednesday this week.  I will consider buying it back if it moves to break above $1.90.   If it does move above $1.90 then it would then have a target above $3.00.   I will wait and see how it behaves over the next week or so.

Synlait Milk (SM1) also had a big fall on Wednesday last week and was sold the following day at $9.75 for a total of $9,730.    The fall to below the stop took it down below the $10.00 level which is the bottom of the sideways level where the stock traded for two and a half weeks prior to mid March.    Again the price reversed to the upside after it was sold and quickly traded back up above the $10.00 level.   Wednesday’s price action could be the start of the next move up or possibly another move down so the indecision is an immediate problem, so again I will wait to see which way it goes before looking at it again.

Finally Stanmore Coal (SMR) closed below its stop on Tuesday this week and was sold on Wednesday at $1.12 for a total of $5,980.   As it turned out, Wednesday’s price bottomed out at $1.11 which was a cent below the spike low formed in mid-March which may have been the bottom of the fall.

When I looked back at the pattern for SMR I realised there was a spike low which I somehow missed at $1.215 which formed on March 06.   This was before I bought the stock and should have ruled the stock out as a buy and I have paid the price for that omission.   It was a silly mistake.

Battery Minerals (BAT) moved up strongly on Friday last week and after a couple of lower volume days a little below the high of last Friday it looks set to move up to its next target around 4c.

Cirrus Network (CNW) moved up with a daily pivot point on Wednesday after a slow pullback from 4.5c to 3.9c so it should now move up to the strong resistance around 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 March 27 – 2019

 

Stock

No. of Shares

Purchase price

Stop

Wednesday Close

MGX

20,000

62.5c

82c

89c

CNW

200,000

2.4c

3.9c

4.3c

PNR

40,000

23.5c

24c

26c

FCT

20,000

34c

30.5c

31c

FPL

400,000

1.2c

1.1c

1.4c

BAT

200,000

3.1c

2.8c

3.1c

 

Cash       $349,882

Shares    $53,800

Total       $403,682