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The last several weeks underline why it is hard to make money trading shares in a sideways market. Sure, you can bag the odd prize if Lady Luck smiles on you, or by trading higher risk speculative stocks-  but that comes with some risk as many have found out in this market.

Importantly (for me) is that the XAO’s Friday candle fell right to the lower boundary of my price channel and rose to close near the candle’s middle – offering some hope that (once again) the worlds investors will mull things over this weekend and decide Friday was oversold so they need to buy on Monday.

XAO 19Mar21

Overall, my own trading was down 0.3% for the week which is at least better than the XAO’s 0.73% loss.

I had no major losses and two gains. CUV, which I bought 2 weeks ago, I topped up during last week and then sold for a 9.7% profit. CUV has the potential to go further but I’m expecting a bit of a retracement first. I bought into CFK and then topped it up. Sitting at $11.17 currently, I have a target of $12.40. CFK showed a 19% gain this week, but much of that was before my buy in and my trade is only up 8%. I also topped up SYD, OZL and WEB (all of which repaid me by subsequently falling back). Neither of these stocks made my Stocks to Watch last week because they only confirmed their likely jump in price this week.

I sold ORA when it hit its target but it fell hard and fast and while I made a profit it wasn’t as good as it could have been. I bought in 3 tranches as price rose and while the first 2 tranches were profitable the last was not.

I’ve left my last week’s Stocks to Watch unchanged. While many have moved down with the market they have all retained potential to rise. I was going to add ALG, SVL and BRN – all of which are building patterns that could see good rises (although BRN is quite a volatile stock and a relatively higher risk trade than the other two stocks). However, they all had some question marks hanging over them and in this market it is probably best to do nothing.

Gold has ticked up a bit this week, but I still see it more likely to fall a bit further yet. Using GOLD as a proxy for physical gold that EFT currently has a price of $208.90. I see the possibility of it falling to $200 or perhaps $195. Based on this I don’t believe gold stocks are quite ready to move up consistently.

GOLD 19Mar21



Robert Norman

Phone: 0428 346 951

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