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Another rollercoaster of a week with the market tossed around by concerns about rising interest rates and inflation as well as predictions of a US recession and of course Vlad the Impaler’s poorly thought out conquest of Ukraine.

With the XAO falling 0.2% for the week, most long term investors would have gone nowhere (my own trading was in line with the general market). The Nasdaq continues to take a hammering (down over 12% for the year to date) and high value but yet to turn a profit stocks here have also been shipping water.

The XAO rose from a minor support level on Friday and (barring unforeseen events) I’d expect higher prices next week. That said, the market had a big recent run up to its present level and the possibility of further falls before the next move up need to be considered as a possibility.

With my Stocks to Watch I’ve removed LTR and TNE because they have both achieved my suggested targets. They may go higher, but for now the patterns I saw in the first instance have been fulfilled. You would have needed to be quick to get out of LTR after it hit target on Monday, as it went on to lose 11% over the next 4 session. I sold 50% of my holding but there is a potential higher target of $2.35 (and I didn’t expect the price to fall as much as it did - or I would have sold the lot – to fight again another day). Hopefully, price will lift from Friday’s low but further falls to $1.60 are certainly on the cards.

LTR 8Apr22

TNE has a similar story having reached target last Wednesday week. I left it in play because it kicked up Friday week ago and I hoped it would go on to make a higher target of $12.40. It followed LTR into the sin bin (along with many other stocks I should say). It looks as if it may bounce up from a minor level of support at this week’s lows. So, like LTR, I’ll keep watching this one.

TNE 8Apr22

I’ve added PME and RTR to replace the aforementioned LTR and TNE.

With big moves being a regular feature of the current market, it remains a difficult time to try and pick winners, and defensive stocks remain a good option. TCL and TLS are two large cap shares I like at the moment that are certainly worth a look.

Contact

Robert Norman

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

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