Day Trader column for November 24 - 2017

Last week saw our market move up after taking a breather the week before.    The move down, although it did trade below the low of the week the indices made their high for the past ten years they closed the week well above that low so did not form weekly pivot points to the downside and last week moved higher.

Another positive for the markets is the SPI Futures contract which trades against the S&P/ASX 200, moved up to be positive to the index for the first time in a very long time.    This indicates to me the professional traders in the market have finally come to the opinion the market will continue to move higher, at least in the short term.

I was stopped out of Australian Milk Company (A2M) a couple of weeks ago and watched it complete what is known in technical terms as an ABC correction.   That is the price moves down (usually sharply from the high), then makes a move back up to retest the high before making the final third leg down to complete the consolidation.   After A2M completed this move, it moved back up slowly and on November 16, on increased volume closed above $7.00.   As a result I bought 3,000 shares on November 17 at $7.13 for a total $21,420 including brokerage.    The initial stop has been raised to $7.01 and the target is around $9.50 which is a projection of the pattern formed since the end of October.

Last week I discussed Queensland Bauxite (QBL) which is one of the stocks involved in legalised marijuana and it had a strong move up from 2c to close above the high formed in March this year.     It then traded at the top of that range for two days and moved up a little on the third day and I decided I would buy 150,000 shares.    The stop is the low price of the three narrow range days at the top of the move up from 2c.    I paid 3.1c for a total of $4,670.    They then moved up during the week to a high of 5.8c before closing on Wednesday at 5.3c.    It looks like they may pull back from here to consolidate and that would provide a higher trailing stop.   There has been a big increase in volume during this recent move up from 2c and there is strong resistance around 6.4c, so I expect it will consolidate around that level.

I mentioned last week holding onto Whitefield Coal (WHC) despite it trading below its stop.    I have been looking closely at, and giving a lot of thought to where to place the stop for stocks as they consolidate in the current strong market conditions.    I will still sell if initial stops are broken but it is the trailing stops I am re-evaluating.    It is a matter of how much profit to put at risk.   You will notice some stocks have closed the week below their stops and I will adjust these in next week’s column.

 

Past columns, information and DVD’s on my methods are available at:-             www.thedaytrader.com.au             

 

Portfolio Position as at close of trade on November 24 - 2017.

 

Stock

No. of Shares

Purchase price

Stop

Wednesdays Close

AJM

60,000

27.25c

34.5c

39.5c

ARV

25,000

24c

39.5c

38c

BIG

5,000

$1.735

$3.18

$4.65

AUZ

300,000

2.3c

9.6c

9.2c

AML

25,000

20c

20.5c

24.5c

WHC

3,000

$3.68

$3.90

$3.70

LIT

50,000

20.5c

19.5c

21c

PLS

10,000

86c

82.5c

99c

QBL

150,000

3.1c

2.7c

5.2c

A2M

3,000

$7.13

$7.01

$7.93

 

Cash       $268,187

Shares    $153,265

Total       $421,452

 

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