Sorry for the lack of charts and videos leading into Xmas...time is one commodity I really wish I had more of since I got back from holidays!
Following on from the link to the ASIC CFD guide that I posted a few days ago, I thought I'd provide a link to a publication from my own CFD Provider - FP Markets.
It's called Avoid Common CFD Mistakes and is well worth the read, particularly for less experienced traders.
Morning all,
Its heading into the XMAS/New Year period, and for anyone who hasn't traded at this time of the year before you will find it very quite as the volumes drop right off. I for one will be taking some time over this period to spend some quality time with the family.
Here are some charts of interest.
Elemental Minerals (ELM) - Closed @ $1.20 yesterday which is a new closing high. I have draw the resistance @ $1.19 from that previous spike but I negated to mention that the recent high of $1.25 might offer some resistance also. Nevertheless, its a nice chart and one which looks to have more left in the tank.
Ausenco Limited (AAX) - Its spend a long time consolidating under the $3.00 resistance level, though it decided yesterday that it was time to move on. Strong buying lead to a breakout to close @ $3.13 after hitting a high of $3.19.
Here is the chart from during the day yesterday after it had made the break. There is no real resistance now until $3.80.
Globe Metals & Mining (GBE) - with urnaium stocks still performing well, this stock seemed to be bucking the trend until they announced they had finally raised funds through placement @ 25c. The market liked the news and we saw some decent buying and a turnaround for Globe. Needs confirmation today, but a break above the MA's would be a real positive.
Prima Biomed (PRR) - Looked at this at 11c yesterday and didnt think it would push on. Before I knew it, it was looking to close @ 12.5c on what was impressive volume. Chart suggests there is a fair bit more upside here, but who knows with this stock as sometimes these BIO stocks have a mind of their own.
Altona Mining (AOH) - a bit of a personal favourite this one. Currently setting up a nice pennant pattern here while consolidating. Break point is around the 36/36.5c level which I will be waiting for. One to definitely keep an eye on as there is news due soon. Chart was done on Wednesday, so its missing yesterday's candle which was not work doing a new chart for.
Finally, Flinders Mines (FMS) - Here is a weekly chart I did at the start of the week. Seems to want to still consolidate and retest the old weekly downtrend as it closed back @ 14.5c yesterday. I think there is some big potential in this stock once it starts moving. One to keep an eye on.
Cheers and good luck today
Kevi
While I was on holidays, ASIC released a new guide that aims to provide retail investors with independent advice on how contracts for difference (CFDs) work and the risks that can be involved in CFD trading.
"Our research with CFD traders found that many traders don't know or don't appreciate key aspects of how CFDs work, despite the fact that they are actively trading them," ASIC commissioner Greg Medcraft said.
I'd certainly like to think that my readers are aware of the mechanics of CFD's, and how they differ from regular equities trading. If you're not, you need to be. In my opinion, it's particularly important to familiarise yourself with the difference between Market Maker and Direct Market Access models (Page 12). Choosing a provider with a DMA model is the only choice as far as I'm concerned. Why even risk trading in a situation where your provider could be profitting from your losses.
The leverage available in CFD Trading can certainly lend itself to large losses if you don't manage it properly and show strong discipline...but I personally wouldn't be in the position I am now without CFD's. Trading CFD's and utilising that leverage wisely and conservatively has helped me grow my equity consistently for many years now.
In the coming weeks I'll try to post in more detail what I see as the advantages and potential pitfalls of CFD's, but in the meantime the guide can be found here.
Well the holiday is over, and now I need to refocus myself in preparation for trading again this week.
After an extended break from the market (and in these conditions I consider 3 weeks an extended break), I find that it's important not to rush back into trading. Even though the process hasn't changed, I think that even those few weeks is enough to create a disconnect from the market. For me, just looking at charts isn't enough to give me a true "feel" for what's been happening.
Part of my trader's edge comes from having a clear picture of how the market is reacting in given circumstances. Are tight range breaks moving explosively? Are stocks kicking on after a break of recent highs? How are news plays behaving? What sectors are hot? While charts can tell you some of the story, for me, only time watching the market can tell the true picture.
So tonight I'll start my market scanning and preparation process. I'll set alerts and create new watch lists for tomorrow, as I would always do. But as the market opens I will try not to rush into positions, and will probably also try to keep position sizes down a little.
As the market tells me more about it's state throughout the week, I'll ramp back up into full trading capacity.
One thing a break does allow is a fresh start with a fresh attitude. It's a great chance to reaffirm all the positive trading habits that you want to pursue. I'll be particularly focussing on making sure I'm trading to plan, and keeping my discipline where it needs to be.
If I continue to focus on the process, the profits should take care of themselves.
Alan
Morning all,
Here are some charts of interest for today.. Plenty of charts out there looking nice, so i'm expecting some decent movers again today even with the DJIA slightly red.
Jabiru Metals (JML)
Sino Gas Energy (SEH)
CUE Energy Resource (CUE)
Altona Mining (AOH)
MEO Australia (MEO)
Good luck today
Cheers
Kevi
Evening all,
I didnt get to post any charts this morning, but had a bit of time now to post some that may be of interest.
The first is Minemakers Limited (MAK) - This chart I did up this morning, it shows a fairly convincing cup and handle pattern which given todays move to close at 42.5c, confirms the breakout.
Here is the chart without today's candle.
Aspire Mining (AKM) - Hit a high of 43c, low of 37c before closing @ 41c. Watch this tomorrow, as it looks like a reversal might be in place.
MEO Australia (MEO)
Altona Mining (AOH) - News due here I believe, so wouldn't be surprised to see this break recent highs in the coming days..
I have a few more nice ones for the morning. Its bed time for me, have a good night.
Cheers
Kevi
Morning all,
Well who would have thought a strong night was ahead of us in the US as we heading into close yesterday afternoon? I'll raise my hand slowly...and here's why!
I flicked over a few stocks yesterday afternoon to see how most of the majors were holding up? ALOT were right on support levels, yet there were a fair few that closed in the green like the big four banks.. I also liked the fact that there were still some stocks rallying even with the 'market fear' starring us in the face.
Here is the Jb hi Fi (JBH) chart yesterday. Right on a major support with a long way to fall if it was broken as the next major support level was some way down. I actually think it might be a buying opportunity in most of the retails leading into xmas as we have factored in such a bearish xmas retail season.. (I may be wrong).
Here are a few index charts, the DJIA and also the XJO. The DJIA chart shows a very nice and convincing break last night from a falling wedge pattern. With the rising volume, I think its significant!
Now here are some stock charts of interest. This afternoons scans will be interesting as I would guess there will be a heap more reversals that show up after todays trading action.
Crane Group (CRG)
Bandanna Energy (BND)
Tiger Resources (TGS)
Independence Group (IGO)
Noble Mineral Resources (NMG)
Charter Pacific (CHF)
Atlas Iron (AGO)
oh and one chart which I did the night before last but havent posted it Aquilla Resources (AQA). Nice breakout.
Anyway thats enough from me.
Good luck today
Cheers
Kevi
Morning all,
With a market struggling to find a trend even short term, its difficult to identify and solid charts of interest. Last night a few more stocks came up in the scans then previous days, so I did manage to get a few charts to post.
Here they are
National Australia Bank (NAB)
Decmil Group (DCG)
Beadell Resource (BDR)
Neon Energy (NEN)
CSL Limited (CSL)
Energy Resources (ERA)
Good luck today
Cheers
Kevi
Morning Al,
Al's on holidays again, geez he has a good life doesnt he! Just jokes, enjoy is mate!
Managed to do a few scans over the weekend, and put together some charts which may be of interest. Wouldnt be surpised to see our market bounce a little today given we anticipated a fairly bleak night in the US on Friday which never eventuated.
Apollo Consolidated (AOP)
Jupiter Mines (JMS)
Coalspur Mines (CPL)
Aspire Mining (AKM)
Not sure also if I had a chance to post this US dollar index chart here yet. It was put together on Friday, so its missing a candle. Its only a possibility of course, but worth noting.
Finally, thoughts go out to the miners and their families trapped underground at the Pike River Coal mine. Very sad, and lets hope for a good outcome in the coming days.
Cheers and good luck today
Kevi
Morning all,
Ive started to have a play around with the charting tool in Spark the last few days, its a little different to what I have been using so ignore anything that shouldnt be showing..(you may notice I have several duplicated EMA's in todays charts).
Also I didnt get alot of results from my scans, so not alot of charts were worthy of posting.
MEO Australia (MEO) - Posted a chart on this one a few days ago. Since then resistance has now been broken @ 57c. I had a quick look at the weekly, and there isnt much resistance now until 66c or so. Yesterdays close was half a cent of the daily high @ 59.5c
Bathurst Resources (BTU) - explosive out of the blocks yesterday after they released an announcement yesterday advising that they had finalised the purchase of Eastern Resources from Gailee. Hit a high of 55.5c yesterday before closing @ 51c after some profit taking. Expect further gains here today IMHO.
Primary Health Care (PRY)
Devine Limited (DVN)
Australasia Cons (AAO)
good luck today
Cheers
Kevi
A few readers have asked how I go about looking for trade opportunities each day, so tonight I've done a video giving a brief overview of one of the morning scans I run.
Alan
Morning all,
Only a small amount of time to post a few charts this morning. Focus will still be on the uranium sector for me as the spot price continues to rise.
Aurora Oil and Gas (AUT)
Deep Yellow (DYL) - Posted a chart on these guys a while ago when it was trading @ 18/19c, with a target in mind of 28c. Target was reached a few days back, however it seemed to show continued strength since.
MEO Australia (MEO)
Chesser Resources (CHZ)
Allied Gold (ALD) - Not sure about this with the pull back in gold overnight. If it shows continued strength today it might be worth considering.
Cheers and good luck
Kevi
This weekend I'll be in Melbourne doing a free 2 hour presentation on behalf of FP Markets.
In an open forum discussion, I'll discuss my trading style, trade set ups, trading psychology, trading tools and trade examples. I'll also be taking questions from the floor during the presentation.
Registrations are essential.
Date: Saturday 13th November 2010
Location:State Library of Victoria
328 Swanston Street, Melbourne
Time: 10am - 12pm
Register here.
Hope you can make it.
Alan
Morning all,
With all the talk about the banks the last few days since the Comm Bank decided to do the so called 'unthinkable' (raising the rates above the RBA's), I thought I would have a quick look at the ASX financials index (XFJ) to see where it is at right now.
Here is a chart. IMHO it looks interesting, and I reckon it has a chance of breaking higher into the upper channel.
Here are a few other charts
Silver Mines (SVL)
Flinders Mines (FMS)
Here is a chart I posted a week or so ago also. Extract closed @ $8.39 Friday and looks to have a big more in the tank..
Extract Resources (EXT)
Consolidated Tin (CSD)
Cheers and good luck this week
Kevi
