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The XAO only rose 0.3% this week but some sectors did well (Information Technology up 3.1%) and others not so good (Consumer Discretionary down 1.2%). In the main it was a fairly flat and uneventful week. The XAO made a reversal candle for the week and has paused near my previous target of 6,797. However, it has made a higher weekly trough followed by a higher high and price has moved up so there is a higher probability of price continuing its subdued climb to the top of the shaded price channel on the chart. Next week is another important week in the soap opera know as the US election and an (unlikely) Electoral College outcome would almost certainly cause the market to tank.

XAO 11Dec2020

Some traders are waiting for the mythical Santa Rally to help their trades over the next few weeks. I shouldn’t say ‘mythical’ because 6 of the last 8 Decembers have seen rises of about 2%. The two losing years were 2018 and 2019. This December is already up 2.1% so perhaps Santa’s been already?

My own portfolio rose by 1.4% overall with the best performers being CHN (up 14.2%), WGN (10.9%) and TRS (8.3%). The worst performers were PAR (down 12.1%), M7T (8.5%) and COH (7.1%).

This week I topped up STO and TRS and bought into LTR (up 22.6% although most of this was before my buy). During the week I sold CHN and WGN – both of which had neared or reached my target.

In an earlier blog I mentioned gold stocks as looking a little challenged given the probability of more falls ahead for physical gold. This week GOLD fell 1.7%, further supporting that outlook.

Nuix listed 4 December to double its issue price only to fall back 25% from its highs this week. However, it is still 53% up on the issue price – so a good deal for those that bought in prior to listing or at the head of the rush when it hit the boards. Not so good for those who bought in subsequently. I don’t trade IPO’s because there is no chart history and the promoters almost always ‘gild the lily’ to extract the maximum possible dollar out of the listing.

5 stockshave been removed from my Stock’s to Watch given their prices have pulled back in this choppy market or they have moved ahead and are too near to their target to be considered as having good short-term potential. Another 5 potential trades have been added - including 3 I have never traded previously but are certainly worth a look.


Robert Norman

Phone: 0428 346 951

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