Day Trader column for November 11 - 2014

Day Trader column for November 11 – 2014

Last Friday all three indices, the All Ords, ASX/S&P 200 and the Futures contract on the ASX/S&P 200 (the SPI) all formed daily pivot points to the upside after a small pullback, which formed a spike low last Wednesday.

Our market now seems ready to attack the 5,670 spike high formed in early September.     How it behaves there will be critical.   A consolidation there and a further move up should see it reach the 6,000 target and likely move on to the all time high of 6,873 which the All Ords formed in 2007.

Infomedia (IFM) looks set to continue its move up and a close above $1.275 should confirm the move towards its next target of $1.60 and then $2.00 to $2.20.    If it continues to move strongly it may get there without me being stopped out.

Australian Pharmaceutical Industries (API) has no real resistance now until the $1.00 level.

As I buy the odd gold stock from time to time I also keep an eye on the gold price chart and as it has broken below the $1,280 support level its next support/resistance level is around $1,240 then $1,100.

It is no surprise then to see many, if not most gold stocks in serious decline.    Gold Road Resources (GOR) a stock I was stopped out of some time back now has a target of 15c, a long fall from the almost 40c it reached in early September.

Newcrest Mining (NCM) one of the higher priced gold stocks is also in serious downtrend with its next support at $7.00 and a break of that level would see it fall a great deal further.

Now, on a more positive note, the sectors with the most likely prospect of gains are the Financials excluding Property Trusts which is almost back to its all time high.   Telecoms, Information Technology and Healthcare along with Consumer Staples are all trading at or around all time highs.  

Interestingly, the Industrials have recently broken above the sideways trading range they have traded within for the past five years.   We may see some action there as well.

It is the Mining and Resource stocks which are dragging the chain at the moment as most have not broken their downtrend.

As they are a big sector in our market we will need to see them at least hold their ground if we are to maintain a serious uptrend.

I did note in my search this weekend that a few Aluminium Stocks that fell around five years ago have recently moved to break the sideways patterns they have been in since then.    One of those may even provide a good trading opportunity in the near future.

Last week I mentioned Liquid Natural Gas (LNG) as a possibility for a new trade.

Last Friday, after a pull back on the daily chart it did form a daily pivot point to the upside, however, it formed with falling volume which makes me very wary.   This is particularly so as there was an increase in volume as it moved down.

With that in mind I have decided to wait and see if it moves back up to its high of $4.49.    If it does move up to that level and consolidates it will lead to a new trade with a potential target around the $6.50 mark.    

 

 

To find past columns, information and DVD’s on my methods goto:-      www.thedaytrader.com.au.    

Portfolio Position

Stock

No. of Shares

Purchase price

Stop

Fridays Close

IFM

7,000

75c

$1.145

$1.24

API

10,000

68c

78c

84.5c

 

Cash       $299,274

Shares    $17,130

Total      $316,404