Day Trader column for September 29 - 2015

Our market is still looking decidedly negative.   Although last week closed well down on the previous week the indices still managed to close the week above 5,000.    However the S&P/ASX 200 and the SPI contract both spiked below 5,000 on Wednesday.   The All Ords is also still trading thirty odd points above the S&P/ASX 200 which is indicating the weakness is still in the top 200 stocks.   This weakness can also be seen in the charts of the Banks, BHP and other major resource stocks along with major retailers as their charts have very similar patterns to the indices.    

This all leads me to believe we will see the indices break below 5,000 and then the next level will be 4,000 with a likely pause at 4,600. 

On Monday last week I bought 5,000 Alexium International (AJX) at $1.045 for a total of $5,445 including brokerage.    The initial stop was 90c, the spike low formed on September 17.   I have since raised it to $1.03, the spike low formed on Wednesday and Thursday last week.   The initial target is $1.45 which is a projection of the pattern from mid-August.    AJX moved up from below 20c to 80c between November last year and January this year and consolidated below 80c until it broke above 80c in August.   It moved up through $1.00 to $1.10 before pulling back to retest the 80c high then consolidated around 90c until it broke above $1.00 again on increased volume on September 18.   This break was my buy trigger.   

I now have three stocks where I have raised the stop to above break even and because I have only bought small quantities of each stock, my total risk is now well within my comfort zone.    

Elders (ELD) pulled back below $4.00 on Friday and found support right on the uptrend line dating back to mid-July.   If it closes below this line then I will sell it and to facilitate this I have placed the new stop at $3.96, which is Friday’s low price. 

Bellamy’s (BAL) looks to have run out of steam at $8.00, but as I have raised its stop to $7.66, the spike low formed last Wednesday.    However, as my original target was $8.50 I will wait a day or so and if it still looks like reversing I will sell and keep an eye on it in the future. 

St Barbara (SBM) pulled back early last week after a couple of reversal days before that, but by week’s end it had reversed the pull back and moved up strongly to close above 90c on Friday.   I was going to sell just below the $1.00,  but I have decide to let the market make that decision, so will raise its stop where I can and hopefully I will be able to hold it when it moves above $1.00, then its next serious target would be around $1.75. 

I have recently had readers emailing me with questions regarding individual stocks and I must remind readers I cannot give individual advice and the column is not a tipping service.  The column is a record of my personal trading and my thoughts on the market.     

  

  

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

Portfolio Position 

 

Stock 

No.ofShares 

Purchaseprice 

Stop 

Fridays Close 

SBM 

7,000 

69.5c 

78.5c 

91.5c 

BAL 

1,000 

$6.30 

$7.66 

$8.00 

AGR 

15,000 

19.5c 

18.5c 

18.5c 

RCR 

2,500 

$2.12 

$2.05 

$2.14 

PLS 

20,000 

19.5c 

23.5c 

21c 

ELD 

1,500 

$4.08 

$3.96 

$4.04 

AJX 

5,000 

$1.085 

$1.03 

$1.045 

 

Cash       $284,114 

Shares    $37,655 

Total      $321,769