The local market continues in a small sideways pattern and is yet to make a decisive move either way. An overall volatile market continues and September has a history of sub-par performance.

The US S@P 500 Index had a down night last night and a break below recent lows could see a further falls. Some analysts suggest a head and shoulders topping pattern is forming.

The US Dollar index has gained some upside recently and it will be interesting to see if this is the start of a new rally. The MACD indicator shows some mixed signals with a new crossover providing some strength to the latest move. Any prolonged strength could put a dampener on the gold price, time will tell.

A few gold stocks including Silverlake  and Saracen shown below look to have found support just above old highs and we bought a small parcel of Saracen today for the educational portfolio.

Two shares we bought last week have moved lower  including NextDC which is moving close to our stop loss level.

Eclipse has moved up strongly from oversold levels and could be posturing for a further move up with higher prices today and we bought a parcel.

Westgold Resources continues to move higher.

Retirement village operator Lifestyle Communities has made a fresh high as the long term uptrend continues and we bought a small parcel for the educational portfolio.

Western Areas has moved up close to 50 per cent in a few days and we will sell a part of the holding and lock in some of those profits.

When updating this week’s table a mathematical error was found from last week where a loss of $480 was left in from the table of 21st August. The $555 actual gain will be added onto the carried forward total in next week’s table in the amount carried forward.

Table

Disclaimer: The commentary and trading positions taken are for educational purposes only and are not an invitation to trade. Trading is risky and individuals should seek Professional counsel before making any financial decisions. Many thanks to Incredible Charts.com software for most of the charts used in the column.

Monitor, measure, manage and maximise… Cheers Charlie.

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