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Another week I prefer to forget about. On days the market rose a little my trades slipped and on the days it fell they slipped further! No dramatic changes but enough to be disappointing. Your fortunes were probably dependent on what market sectors you favoured – while Financials rose by nearly 5%, Gold fell by 6% with Health not far behind at 4.5%.

The XAO after going nowhere for the week (down 0.03%) is still clinging to the lower boundary of a long-standing price channel. While the week’s low fell out of the channel it rose to close right on the boundary, meaning the body of the candle this week stayed in the channel. The fact it closed near its mid-point is positive and offers hope of some recovery next week. I still feel another rally is on the cards before the market sees another correction.

XAO 5Mar21 

I sold out (or down) some small holding in non-performing trade as their price fell – PLS, MVP, PAR, CIM, MSB, FPH, DOW and WPL. PLS looks like it may be trying to move up having made a reversal candle this week and DOW moved up later in the day I sold. FPH, DOW, PAR and CIM will remain on my watchlist for potential rebuys if/when the market recovers.

I bought COH and SGM this week and both subsequently fell a little.

My best performers for the week were SGM (5.4%) and OSH (+4.2%) – although SGM was purchased during the week after much of that rise. TRS (down 6%) was the only stand out loss. I’ve persevered with TRS because its chart suggests this week was (should be) its low and as it made a strong reversal candle, a long-legged doji (you’ve got to love the names!) I’ll be interested to see where price goes next week.

Given the volatility of the market and many shares having fallen back this week I can’t see any new stocks to add to my Stocks to Watch page. I can see many I think look like they are working on a price recovery, but their price patterns are less than certain. Of last weeks list I’ve deleted ABC and NCM which have both moved significantly lower. Some others that moved lower for the week, like WGN and TRS moved up on Friday to make reversal candles. Others that moved lower still show potential to change trend.

Gold which is traditionally a safe haven in difficult times shows no signs of stopping its 8th month of falls, losing nearly 25% of its value.

Contact

Robert Norman

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

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