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Down one week, up the next. Last week's range of 350 points for the XAO was the largest since April last year. Interestingly, the XAO has had the same high for each of the past 3 weeks and something has to give soon – I’m leaning a bit more towards higher prices than I was last week. The coming week could decide the future short-term direction of the market.

The XAO was up 3.2% for the week which was exactly the same outcome as my own portfolio. A theoretical trading portfolio I am running for purchasers of my educational material also showed a 3.7% gain. This portfolio is designed to show budding chartists how to deal with what I call the ‘hold or fold’ decision when prices start to fall. To show why hard stop losses can be problematic and that those issues can be mitigated by relatively simple charting techniques, there is a video I posted yesterday that might be of general interest. This arose from both BPT and ABC breaking stop losses a week ago to trigger a sale last Monday, but going on to recover with rises of 10% and 12% respectively.

This week I bought NEA and topped up BSX and SIQ. My largest gainer was PAR (+20.4%) followed by BSX (14.6%), NEA (14% although I didn’t hold for all that rise), ABC (11.5%) and SIQ (10.3%). Three stock fell but not by meaningful amounts.

With my Stocks to Watch I deleted DOW because it made a lower low and included BLD, ECX, NEA and VOC.

For the gold followers, the precious metal slipped another 1.9% last week but is at a strong level of support which could see a reversal of its fortunes. That said, it remains in a formal downtrend, making lower peaks and troughs.


Robert Norman

Phone: 0428 346 951

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