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The XAO continues to trade sideways in a narrow band and the potential jump higher didn’t happen this week. If price does manage to make a new all-time high in the next couple of weeks I see there remains the potential for a move up to 7,845 but in this fickle market making predictions about price movement is problematic and a fall is just as likely as a rally.

The gold and IT sectors were the big losers this week with gold down 1.8% and IT 3.1% - so, as for previous weeks, whether you made or lost money last week will depend on your exposure by sector.

My student trading portfolio finally had to close out 2 trades this week – the first in 6 months. A search for some replacement trades showed there to be very, very few safe bets out there (if anything is safe in this market). In fact I only found 3 stocks I could recommend because they ‘ticked all the boxes’. This tells me that perhaps the best course of action is probably to sit on the cash, but an educational portfolio without any trades wouldn’t be very educational. I keep a balanced portfolio of 10 stocks, by the way.

After closing out the two trades the portfolio is up 14.5% for 7.5 months – an annualised return of 23.3%

My own trading saw no major moves (CUV was the biggest mover, up 5.8%) but 1/3 rose and 2/3 fell leaving me down about 1% for the week. I remain a bit overweight in gold, which again dragged me down this week. However, I still feel confident that the charts are saying gold will move up from the current price. I finally put a bullet in my SPL trade’s head this week as its price continued to drift lower.

With my Stocks to Watch KGN reached its target and has been removed (it fell heavily after achieving target). The other stocks from last week have been retained, despite most falling by 2% or so last week. As noted above, there doesn’t seem to be many exciting picks jumping out from the charts this week, but I’ve added BXB as it has broken above a downtrend, made a new uptrend and is coming off a significant low. The chart suggests a potential 16% rise in price in the short/medium term.


Robert Norman

Phone: 0428 346 951

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