Day Trader column for November 17 - 2017

Not a good week for our portfolio as the market has taken back the previous weeks gain, but I suspect it is the correction we had to have.    If the indices continue down after this column is written at the end of trade on Wednesday, then we will see a weekly pivot point to the downside.    For this to happen, the All Ords will need to close trading today below 6020.7.    If we do see a weekly pivot point formed then we will need at least a couple of weeks to reverse that position.

I decided when the market fell sharply on Tuesday that I would continue to hold Australian Mines (AUZ) as the placement made by the company recently was at a price below the current share price.    Under different circumstances and at other times in the market cycle I would have sold the shares when the announcement was made as the share price in these circumstances usually falls.    However, the multi-year consolidation for AUZ and many other small stocks has convinced me the market is at the beginning of a major move to the upside.    With this in mind and the rapid move from two cents to fifteen cents in the case of AUZ over the past month, a correction was to be expected.    I will make a decision this weekend whether to continue to hold AUZ based on how it has behaved yesterday and today.

Whitehaven Coal (WHC) was also hit by the market downturn and was the only stock to actually break its stop, but the price action on Wednesday indicated it had reversed the move down and was ready to move up again.    If it does not follow through and move up it will be sold.

The move down was not stock specific, as all stocks with the exception of Big Un (BIG) in our portfolio fell for the week along with similar moves right across the market.

We will now have to wait and see how long the correction lasts.   As it progresses it will no doubt provide further buying opportunities.   

Last week I mentioned I had bought another 30,000 shares in Altura Mining (AJM) bringing the total holding to 60,000 shares.    The reason for the purchase was the buy pattern I have described often over the last month or so.   On October 30 the price moved up strongly from a three week consolidation and then traded in a narrow range at the top of this strong move up.   These two narrow range days at the top of a strong break out move are the buy signal I have used as a buy trigger on a number of occasions recently.

The pullback over the past few days has traded down to the top of these two narrow range days and it will be interesting to see if this is then end of the correction.

I mentioned some time back there were a number of stocks involved in the legal marijuana business and Queensland Bauxite (QBL) is one with an interest in it and has started to move up recently.

 

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

Portfolio Position as at close of trade on November 17 - 2017.

 

Stock

No. of Shares

Purchase price

Stop

Wednesdays Close

AJM

60,000

27.25c

34.5c

37c

ARV

25,000

24c

39.5c

41.5c

BIG

5,000

$1.735

$3.18

$4.00

AUZ

300,000

2.3c

9.6c

10.5c

AML

25,000

20c

20.5c

24c

WHC

3,000

$3.68

$3.90

$3.73

LIT

50,000

20.5c

19.5c

21c

PLS

10,000

86c

82.5c

91c

 

Cash       $294,277

Shares    $119,615

Total       $413,892

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