For a second week in a row the blog portfolio outperformed the Aussie 200 index (XJO). Whilst the index closed nearly the same than the previous week, the blog portfolio advanced with the profit of our open positions up to 7.12%. This was thanks to the takeover bid for the Australian Stock Exchange (ASX), which sent the stock soaring up to 43.89. Unfortunately objections to the takeover caused much of the gain being wiped out again with ASX closing at 37.10.
In hindsight it would have been a good idea to sell half of the holding near the top. However it is always difficult to pick where the top would be when you get a spike like this. And there is nothing preventing the stock going up further. It all depends on your personal investment strategy and your mindset. Personally I like to take some profits when a stock comes down again like this. In a big move like this you could take the half way point of the move as a profit target. In any case it is important you don’t let a trade like this turn into a losing trade (even if the technical indicators don’t give you the sell signal) as this really hurts.
Apart from this we sold HVN (Harvey Norman) as it gave us two closes below the uptrend band. I forgot to mention before that we sold GPT (GPT Group) on the 8th October for the same reason. Last week we also added DOW (Downer EDI Ltd) to the portfolio and we have still two spots remaining. I will fill them with new buys and not with buys that carry over from the previous week or have been a buy before (since their turning point). This brings me to next week, WBC (Westpac Banking) is fulfilling all the buy criteria according to my analysis and will be added to the portfolio.
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Categories: Portfolio, Trading Updates Tags: asx, ben, DOW, gpt, hvn, map, nif, NWS, SUN, wbc
Back home again after what was a very relaxing holiday in Chile. It is nice taking some time out and when you come back you look at things with fresh eyes. Whilst the markets have fallen in the three weeks that I was away, looking back it is very clear that we are in a sideways patterns since May this year. The range of the swings up and down seem to get smaller and we can expect bigger moves once either support or resistance levels are broken.
If the market breaks to the upside, then we are well positioned with now 19 open positions in the portfolio. Last week was another uneventful one for the portfolio with the value of our open positions edging half a percent lower. With ASX (ASX Limited) we added another position and what I like about this one is that the risk for ASX is only 8%.
The transaction was:
23rd August: Buy 330 ASX at 30.26
Looking ahead to next week, I have TOL (Toll Holdings Ltd) and LEI (Leighton Holdings Ltd) fulfilling the buy criteria according to my analysis. I still need to analyse the risk of both before I decide which one to add as I don’t want to have more than 20 open positions in the portfolio. ASX is still a buy as well. Outside the portfolio I found one stock meeting the sell criteria, which is COH (Cochlear).
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Apologies for missing last week’s update, I decided to spent some quality time with family on our holidays after we came back from my first skiing experience in Chile. We had great weather and best of all fantastic snow. I’ll definitely be back for more in years to come. Well as I skied downhill the markets went downhill as well. At least that was what I heard when I turned on the news. I expected the portfolio to be in negative territory again and was surprised to still see it clinging to a 1 percent gain.
There was quite a bit of activity while I was offline with TLS (Telstra Corporation) triggering the stop and three more additions to the portfolio. Telstra actually plunged to a new all time low at 2.82. OST (OneSteel) was a buy two weeks ago and last week we have added PPT (Perpetual Limited) and CWN (Crown Limited).
The transactions in detail:
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