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The XAO showed a 0.3% gain this week, or put another way it hasn’t gone anywhere. It did rally a little earlier in the week before drifting back. On the positive side it is still making higher lows and higher highs, however, a fall below 5992 would break that run and see the potential for price to fall to 5830 and if that doesn’t hold - 5400. I’m still leaning towards prices recovering and going higher but I’m less optimistic than I was last week. The US market is nervous with the forthcoming US election and tech stocks have fallen out of favour.

I’ve been through my portfolio several times this week to identify stock showing signs of weakness, not performing as I had hoped and reviewing my stop losses. It will be necessary to jettison a few of these if the gathering storm clouds do more than just threaten. Again, it is not a time to buy unless some irresistible opportunity arises.

I did come across one ‘too hard to pass up’ pattern on a small gold miner (TSO). It suggested a rise from $0.24 to $0.30 when I became aware of it on Wednesday. I bought on Thursday and sold on Friday for a quick 15% gain. I probably sold prematurely on Friday when price stalled and the market in general was sliding. Ultimately, it rose 32% yesterday to close near my target. With the weekend coming I felt a ‘bird in the hand’ approach was appropriate.

I also bought PPS (which I mentioned in a recent blog). I also bought more CSR which has moved up and shows what I believe to be a potential to go higher.

I reluctantly sold SPK as it just hadn’t performed as expected and has been falling back with the potential to fall further. I bought SPK in three tranches and made a profit on the first, broke even on the second and lost on the third. Overall, it was a very small loss on the trade. I feel it may very well recover, but the charts don’t agree.

In general, my portfolio did OK this week with the standout performers being PLS (up 16.2%), CSR (7.4%), MYX (6%), AVH (9%) – and of course TSO mentioned above. The biggest loser was VOC (down 5%) but still in positive territory from prior gains.

Of interest, the big building stocks – ABC, BLD, BKM and CSR (the only one I hold) are all moving up strongly.

As noted, this isn’t really a time to buy but I’m watching COH, NUH, ORI, PPS, RED, SAR and SGM for opportunities.

Contact

Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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