Holy rebound Batman!
World markets have staged an extraordinary rebound after the UK government did a backflip on proposed tax cuts and the US printed some softer jobs data. Our own RBA boss Dr Philip Lowe added some extra optimism to the local market with a surprise 25 basis point rise in the official cash rate. It was half of what was generally anticipated and pushed the market higher after the announcement. On the daily chart the down-trending trend line might bring with it some resistance and a short-term top, OR NOT, time will tell.
On the hourly time frame the market moved up quickly through the trend line and we bought a small parcel of ASX 200 cfd’s and sold half when the market ran into a resistance zone near the close of trade Wednesday.
The local market has bounced off longer term support levels for now.
We bought into Red 5 again after price briefly gapped down due to an equity raise that will support the companies next growth phase.
We bought into two bearish ETF’s when markets broke the June lows. We were quickly stopped out of those positions when markets turned sharply. The market may have formed a double bottom formation or this could just be another bear market rally. Our finger is on the exit button for the long positions we have and could trim some positions as profit grows or price runs into resistance. Watching.
After exiting the bearish ETF’s we bought into the US Gear fund Tuesday morning.
We are watching the NDQ ETF.
The price of gold has formed a bearish divergence with the MACD Histogram indicator. How much of a move to come is a guess and we will monitor gold and gold stocks for buying opportunities.
As the strong US dollar weakens some gold stocks like Northern Star could come to the fore.
IDP Education looks to be forming a bullish flag pattern and we bought a parcel today for the educational portfolio.
Not all potential patterns work out as Domino’s Pizza broke down from a potential bullish flag pattern.
Life360 has so far struggled to break higher.
Karoon Energy looks to be making a rounding bottom type pattern.
After a spike lower REA Group has regained ground.
A great chart showing different RBA rate hiking cycles.
The US dollar index looks to have run into some resistance.
One view of the banking sectors loan growth.
Lower equity prices usually follow lower earnings forecasts.
Table
Security | Units bought (sold) | Date | Open price/ From last table | Current/close | $ gain/loss |
Bought Whitehaven Coal c/f at $2.76 | Bought 300 at $2.70 | 23/12/2021 | $8.45 | $9.76 | +$393.00 |
Bought Computershare | Bought 120 at $20.50 | 5/1/2022 | $24.79 | $25.65 | +$103.20 |
Bought CSL
| Bought 12 at $260.00 | 16/2/2022 | $284.00 | $290.00 | +$72.00 |
Bought Brainchip
| Bought 2,000 at 80c | 16/6/2022 | 88c | 91c | +$60.00 |
Bought Aristocrat Leisure | Bought 100 at $35.60 | 6/7/2022 | $33.40 | $34.35 | +$95.00 |
Bought Whitehaven Coal | Bought 300 at $6.00 | 18/7/2022 | $8.45 | $9.76 | +$393.00 |
Bought Australian Vanadium | Bought 25,000 at 0.05 | 10/8/2022 | 0.04c | .037c | -$75.00 |
Bought Stavely Minerals | Bought 10,000 at 18c | 10/8/2022 | 15c | 16.5c | +$150.00 |
Bought Allkem
| Bought 200 at $14.50 | 8/9/2022 | $14.34 | Sold 3/10 at $13.50 | -$198.00 |
Bought BBUS ETF
| Bought 300 at $12.20 | 30/9/2022 | $12.20 | Sold 4/10 at $11.80 | -$150.00 |
Bought BBOZ ETF
| Bought 600 at $4.70 | 30/9/2022 | $4.70 | Sold 4/10 at $4.40 | -$210.00 |
Buy GEAR ETF
| Bought 200 at $20.20 | 4/10/2022 | $20.20 | $22.04 | +$368.00 |
Buy Red 5
| Bought 10,000 at 17c | 4/10/2022 | 18c | 18c | Steady |
Buy 4 ASX 200 cfd’s
| Bought 4 at 6,600 | 4/10/2022 | 6,600 | Sold 2 at 6,815 2 left at 6,815 | +$400.00 +$430.00 |
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Start 2/1/2022 $50,000.00 | Open balance $66,180.25 |
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| $66,180.25 |
| Gains/losses week +$1,831.20 |
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| +$1,831.20 |
| Current total $68,011.45 |
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| $68,011.45 |
Brokerage at $30 per round turn added when sold. | Buy/ close prices and Margin $27,052.00 |
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| $27,052.00 |
Prices from Wednesday night or 6am for US positions. | Cash available $41,087.40 |
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| $41,087.40
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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.
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