Follow us on our Journey

With the XAO falling 1.2% most traders will have ended the week in the red with some major crashes along the way. Anyone holding A2M shares will be wishing they didn’t after their fall of 21%. BNPL shares also tumbled close to 7% and could have more to go.

The XAO isn’t moving in an alarming way, just as one might expect after reaching record highs. This week it closed lower than it has for 5 weeks, suggesting weakness but Friday saw some recovery and we’ll just need to see where next week goes.

My own trading has mirrored the market – down 1.6%.

I sold EMV and SGM to lock in profits and topped up EVN, NCM and bought into SLR as it looks as if gold might be going to continue moving up. SLR fell a little while EVN and NCM rose, but there were no notable moves amongst any of my holdings.

With concerns about inflation and the resultant rise in interest rates on the minds of investors there is little to suggest (other than a strong finish to the week by the US market) that next week won’t see another lacklustre performance.

Picking candidates for my Stocks to Watch page has been a challenge in this market with 50% of those listed last week having fizzled out and retraced. Only EMV achieved (almost) its target before falling heavily. XRO fell 16% on concerns about tech stocks and an underwhelming outlook statement.

One concern for me is that reviewing a large number of stocks as I do most weekends, those developing a bearish outlook far outweigh those with a promising future. Also, I couldn’t find any new stock that I thought showed great promise – and that doesn’t augur well for the market. There will be stocks that rise, of course, but predicting those from the charts is less certain.

I have been watching two stocks SXY and TMT and both are high risk plays, although TMT less so (assuming it breaks up out of the pattern as outlined in my analysis). Given nothing else caught my eye, I’ve included these two stocks in my Stocks to Watch page.

Contact

Robert Norman

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

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