Follow us on our Journey

What a difference a week makes! Last week it was looking like the XAO was rolling over to go lower only for this week to rise 5.5% - being the strongest sustained rise since April with (importantly) a close at the highest level since the March low. Will it go higher? With volatility caused by market uncertainty due to the economic hit of the virus and the upcoming US election it is impossible to say and we’ll need to wait for next week to see what unfolds. A break higher would be a very positive sign but (despite the popping of champagne corks in the background) be aware that prices often make a major push down before rising strongly or (as could be the case here) a major push up before crashing down.

Last week I mentioned closing out IGO on a broken stop loss and of course the stock’s price has since risen sharply. However, but it could just have easily gone the other way – and may do so if last week’s euphoria disappears. My portfolio performance for the week was 7.0% - a little better than the overall market. This result was gratifying given it includes a 14.5% fall by MYX after a failed/delayed application to the FDA. Speaking of the FDA, MSB has recovered 5.6% for the week but I’m having second thoughts about holding onto this stock in the hope of better times because it looks like any recovery could be long term and, if so, my funds could be better utilised elsewhere - but I’ll wait and watch for a little longer.

Last week I mentioned WGN and DSE as a couple of stocks that had made promising patterns and included them on my Stocks to Watch page. I bought and sold KGN this week for a 12.5% gain but should have held on for my target as it made 28% for the week. I passed over DSE but it also rose by 21% before falling back to close 12% up for the week.

My best performers were PLS (17%), EOS (14%), BID (10%), PPS (10%), LOV (13%) and MQG (9%). The latter two were purchases this week after strong patterns being identified. Apart from MYX all trades rose except TCL (-0.9%).

See my Stocks to Watch for potential tradeable patterns identified this week. With the surge in prices many stocks have commenced building tradeable patterns, most of which will probably come to nothing. Consider the stocks mentioned only as “potential” trades. If you don’t have reasonable charting skills (or have not read my educational material) and cannot do your own analysis (and especially set stop losses), then you shouldn’t trade them.

If you read Stocks to Watch last week you would have seen BAP and ECX were listed as potential trades. This proved to be a good call as BAP rose by 10.8% this week and ECX 8.4%. Both are approaching their suggested targets and while there is nothing to say they will stop at said targets, a short term trade would now be high risk.

Contact

Robert Norman

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

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