Day Trader column for November 10 - 2017

 

 

The All Ords which includes hundreds of second line stocks is still trading seventy points above the S&P/ASX 200 which is telling us the majors are still dragging the chain.


As per last week’s column I bought 10,000 Pilbara Minerals (PLS) on November 02and I paid 86c per share for a total of $8,620 including brokerage.    The initial stop was 75c, the spike low formed on October 27, and the trailing stop was raised to 82.5c which was the spike low formed by the small pullback on November 2/3.    The immediate targets for PLS are around $1.02 then a projection of the pattern formed since May 2016 which is near $1.40.    If these targets are reached and the market is still strong then its likely next target would be $2.00.     


However, when each of these targets are reached there will inevitably be consolidation and sometimes a pullback will move the price to close below the trailing stop.   In these cases the stock will be sold and then if it behaves in a manner that indicates another move up, I would hopefully find another buy trigger for a further move to higher levels. 


This has happened in the case of BIG UN (BIG) and A2 Milk Company (A2M) which have been bought, stopped out at a profit and bought again at a later date.


In the case of A2M it was sold again on Wednesday at $6.43 after it closed below its stop on Tuesday for a total of $19,260 after brokerage.   This was a good profit and it may form another buy trigger after some consolidation.    In this case however, the fall from the recent high of $7.90 was considerable as there had not been a small pullback before the high was reached to form a close trailing stop.   These rapid moves often cause trailing stops to be a long way below the current price and cause a dilemma in deciding whether to take a profit as the price rises or watch some considerable profit being eroded as the price moves down towards the trailing stop.   In this case the plan is that the price will reverse to the upside before the stop is triggered.


Now that A2M is stopped out I will have to wait and see if it recovers from the recent fall.


The next stock bought was 50,000 Lithium Australia (LIT) at 20.5c for a total of $10,280.     It had moved up to 19c from a sideways move and consolidated for two days within the top half of the big move up.     This pattern has started to appear quite often and is a pretty reliable place to buy for another strong move.     I have found when this pattern forms it repeats a couple of times but it becomes high risk to trade it if it forms a third time.    The initial stop for LIT is 19.5c the lowest price it traded during the two day consolidation.    The initial target is the all-time high of 32c.   


I also doubled my holding in Altura Mining (AJM) to 60,000 shares.


 


 


Past columns, information and DVD’s on my methods are available at:-              


Portfolio Position as at close of trade on November 08 - 2017.


 


Stock

No. of Shares

Purchase price

Stop

Wednesdays Close

A2M

3,000

$3.88

$6.98

$7.16

AJM

60,000

27.25c

34.5c

42.5c

ARV

25,000

24c

39.5c

47.5c

BIG

5,000

$1.735

$3.18

$3.50

AUZ

300,000

2.3c

9.6c

14.5c

AML

25,000

20c

20.5c

21.5c

WHC

3,000

$3.68

$3.90

$4.08

LIT

50,000

20.5c

19.5c

23c

PLS

10,000

86c

82.5c

93c


 


Cash       $294,277


Shares    $136,790

Total       $431,067

 

 


Day Trader column for June 16 – 2017

Last week our market had a big fall on Tuesday then for three days the market forces were not able to push it any lower.   Wednesday, Thursday and Friday’s market action each day, was to push the index lower but the Bulls in the market were able to overcome the downward push and force the market to close back at its open (and close) for the day.    The move down on Tuesday last week I believe was the final exhaustion move, down from the April/May highs.   The next three days were the reversal days and then on Tuesday this week the big move up on increased volume was, for me, strong confirmation the market will now resume the uptrend.

The strong move was reflected in the banks which will carry the market at least until it gains more momentum.

As a result of this new confidence I have bought three stocks and in line with my risk management methods I will buy more when I have locked in profit on these three by raising their trailing stops.

I bought 3,000 A2 Milk Company (A2M) on June 13 at $3.25 for a total of $9,770 including brokerage.    I was stopped out of A2M a couple of weeks ago and have been watching them move sideways on greatly reduced volume until the increased volume and move up on Thursday last week.    This was followed by a daily pivot point to the upside on Friday.    This coupled with the reversal days on the index was my buy signal.    If it continues up it has a target around $4.00.    The stop is now $3.20, the low of the day it was bought.

I bought two stocks on Wednesday this week.    The first was Pantoro Ltd. (PNR) which I was also stopped out of some time ago.    It broke above its February 2017 high last week and pulled back for two days testing the 24c level and Tuesday was a low volume indecision day when the price opened at 24c, traded a half cent either side of that and closed the day at 24c.    I bought 25,000 at 24c for a total of $6,020.

The target for PNR is 31c which is a major resistance level, so I will sell it around 30c and wait to see what it does there.   The initial stop is 23c, last Friday’s spike low.   If it continues to move up it will strike further resistance around 50c.    

The second stock bought on Wednesday was Resmed (RMD) which I have been watching for some time, along with the other stocks discussed over the last few weeks.    It broke above its March high of $9.60 on June 01 and had a slow, low volume pullback to test the $9.60 level and then formed a daily pivot point to the upside on increased volume on Tuesday.   This pivot point was the buy signal and I bought 1,000 shares on Wednesday.   It opened at $9.95 (which was a gap to the upside) and the total cost was $9,970.   The initial stop is $9.62 and the first target is $10.20 but the bigger target is around $13.00.  

I am watching the other stocks mentioned recently as most are close to forming buy signals.

 

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 14 - 2017.

 

Stock

No. of Shares

Purchase price

Stop

Wednesday’s Close

A2M

3,000

$2.75

$3.11

$3.39

PNR

25,000

24c

23c

25c

RMD

1,000

$9.95

$9.62

$9.98

 

Cash       $327,782

Shares    $26,400

Total       $354,182

 

Day Trader column for June 16 – 2017

Last week our market had a big fall on Tuesday then for three days the market forces were not able to push it any lower.   Wednesday, Thursday and Friday’s market action each day, was to push the index lower but the Bulls in the market were able to overcome the downward push and force the market to close back at its open (and close) for the day.    The move down on Tuesday last week I believe was the final exhaustion move, down from the April/May highs.   The next three days were the reversal days and then on Tuesday this week the big move up on increased volume was, for me, strong confirmation the market will now resume the uptrend.

The strong move was reflected in the banks which will carry the market at least until it gains more momentum.

As a result of this new confidence I have bought three stocks and in line with my risk management methods I will buy more when I have locked in profit on these three by raising their trailing stops.

I bought 3,000 A2 Milk Company (A2M) on June 13 at $3.25 for a total of $9,770 including brokerage.    I was stopped out of A2M a couple of weeks ago and have been watching them move sideways on greatly reduced volume until the increased volume and move up on Thursday last week.    This was followed by a daily pivot point to the upside on Friday.    This coupled with the reversal days on the index was my buy signal.    If it continues up it has a target around $4.00.    The stop is now $3.20, the low of the day it was bought.

I bought two stocks on Wednesday this week.    The first was Pantoro Ltd. (PNR) which I was also stopped out of some time ago.    It broke above its February 2017 high last week and pulled back for two days testing the 24c level and Tuesday was a low volume indecision day when the price opened at 24c, traded a half cent either side of that and closed the day at 24c.    I bought 25,000 at 24c for a total of $6,020.

The target for PNR is 31c which is a major resistance level, so I will sell it around 30c and wait to see what it does there.   The initial stop is 23c, last Friday’s spike low.   If it continues to move up it will strike further resistance around 50c.    

The second stock bought on Wednesday was Resmed (RMD) which I have been watching for some time, along with the other stocks discussed over the last few weeks.    It broke above its March high of $9.60 on June 01 and had a slow, low volume pullback to test the $9.60 level and then formed a daily pivot point to the upside on increased volume on Tuesday.   This pivot point was the buy signal and I bought 1,000 shares on Wednesday.   It opened at $9.95 (which was a gap to the upside) and the total cost was $9,970.   The initial stop is $9.62 and the first target is $10.20 but the bigger target is around $13.00.  

I am watching the other stocks mentioned recently as most are close to forming buy signals.

 

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 14 - 2017.

 

Stock

No. of Shares

Purchase price

Stop

Wednesday’s Close

A2M

3,000

$2.75

$3.11

$3.39

PNR

25,000

24c

23c

25c

RMD

1,000

$9.95

$9.62

$9.98

 

Cash       $327,782

Shares    $26,400

Total       $354,182

 

Day Trader column for June 16 – 2017

Last week our market had a big fall on Tuesday then for three days the market forces were not able to push it any lower.   Wednesday, Thursday and Friday’s market action each day, was to push the index lower but the Bulls in the market were able to overcome the downward push and force the market to close back at its open (and close) for the day.    The move down on Tuesday last week I believe was the final exhaustion move, down from the April/May highs.   The next three days were the reversal days and then on Tuesday this week the big move up on increased volume was, for me, strong confirmation the market will now resume the uptrend.

The strong move was reflected in the banks which will carry the market at least until it gains more momentum.

As a result of this new confidence I have bought three stocks and in line with my risk management methods I will buy more when I have locked in profit on these three by raising their trailing stops.

I bought 3,000 A2 Milk Company (A2M) on June 13 at $3.25 for a total of $9,770 including brokerage.    I was stopped out of A2M a couple of weeks ago and have been watching them move sideways on greatly reduced volume until the increased volume and move up on Thursday last week.    This was followed by a daily pivot point to the upside on Friday.    This coupled with the reversal days on the index was my buy signal.    If it continues up it has a target around $4.00.    The stop is now $3.20, the low of the day it was bought.

I bought two stocks on Wednesday this week.    The first was Pantoro Ltd. (PNR) which I was also stopped out of some time ago.    It broke above its February 2017 high last week and pulled back for two days testing the 24c level and Tuesday was a low volume indecision day when the price opened at 24c, traded a half cent either side of that and closed the day at 24c.    I bought 25,000 at 24c for a total of $6,020.

The target for PNR is 31c which is a major resistance level, so I will sell it around 30c and wait to see what it does there.   The initial stop is 23c, last Friday’s spike low.   If it continues to move up it will strike further resistance around 50c.    

The second stock bought on Wednesday was Resmed (RMD) which I have been watching for some time, along with the other stocks discussed over the last few weeks.    It broke above its March high of $9.60 on June 01 and had a slow, low volume pullback to test the $9.60 level and then formed a daily pivot point to the upside on increased volume on Tuesday.   This pivot point was the buy signal and I bought 1,000 shares on Wednesday.   It opened at $9.95 (which was a gap to the upside) and the total cost was $9,970.   The initial stop is $9.62 and the first target is $10.20 but the bigger target is around $13.00.  

I am watching the other stocks mentioned recently as most are close to forming buy signals.

 

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 14 - 2017.

 

Stock

No. of Shares

Purchase price

Stop

Wednesday’s Close

A2M

3,000

$2.75

$3.11

$3.39

PNR

25,000

24c

23c

25c

RMD

1,000

$9.95

$9.62

$9.98

 

Cash       $327,782

Shares    $26,400

Total       $354,182

 

Day Trader column for June 16 – 2017

Last week our market had a big fall on Tuesday then for three days the market forces were not able to push it any lower.   Wednesday, Thursday and Friday’s market action each day, was to push the index lower but the Bulls in the market were able to overcome the downward push and force the market to close back at its open (and close) for the day.    The move down on Tuesday last week I believe was the final exhaustion move, down from the April/May highs.   The next three days were the reversal days and then on Tuesday this week the big move up on increased volume was, for me, strong confirmation the market will now resume the uptrend.

The strong move was reflected in the banks which will carry the market at least until it gains more momentum.

As a result of this new confidence I have bought three stocks and in line with my risk management methods I will buy more when I have locked in profit on these three by raising their trailing stops.

I bought 3,000 A2 Milk Company (A2M) on June 13 at $3.25 for a total of $9,770 including brokerage.    I was stopped out of A2M a couple of weeks ago and have been watching them move sideways on greatly reduced volume until the increased volume and move up on Thursday last week.    This was followed by a daily pivot point to the upside on Friday.    This coupled with the reversal days on the index was my buy signal.    If it continues up it has a target around $4.00.    The stop is now $3.20, the low of the day it was bought.

I bought two stocks on Wednesday this week.    The first was Pantoro Ltd. (PNR) which I was also stopped out of some time ago.    It broke above its February 2017 high last week and pulled back for two days testing the 24c level and Tuesday was a low volume indecision day when the price opened at 24c, traded a half cent either side of that and closed the day at 24c.    I bought 25,000 at 24c for a total of $6,020.

The target for PNR is 31c which is a major resistance level, so I will sell it around 30c and wait to see what it does there.   The initial stop is 23c, last Friday’s spike low.   If it continues to move up it will strike further resistance around 50c.    

The second stock bought on Wednesday was Resmed (RMD) which I have been watching for some time, along with the other stocks discussed over the last few weeks.    It broke above its March high of $9.60 on June 01 and had a slow, low volume pullback to test the $9.60 level and then formed a daily pivot point to the upside on increased volume on Tuesday.   This pivot point was the buy signal and I bought 1,000 shares on Wednesday.   It opened at $9.95 (which was a gap to the upside) and the total cost was $9,970.   The initial stop is $9.62 and the first target is $10.20 but the bigger target is around $13.00.  

I am watching the other stocks mentioned recently as most are close to forming buy signals.

 

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 14 - 2017.

 

Stock

No. of Shares

Purchase price

Stop

Wednesday’s Close

A2M

3,000

$2.75

$3.11

$3.39

PNR

25,000

24c

23c

25c

RMD

1,000

$9.95

$9.62

$9.98

 

Cash       $327,782

Shares    $26,400

Total       $354,182