The Australian share market finished the week slightly higher than the week before, whilst the blog portfolio moved marginally lower. This is to be expected when adding new stocks to the portfolio. Last week we added TLS (Telstra Corp Ltd), which finished the week 2% up compared to the opening price on Monday. Apart from this there wasn’t much movement in the portfolio.
Looking forward to Monday, I have a number of stocks fulfilling all the buy criteria according to the Home Study Course. They are DOW (Downer EDI Ltd) (under 3.92), TEL (Telecom Corporation of New Zealand) (under 1.74) and WOW (Woolworths Ltd) (under 27.33). This is interesting that all three are close to the 33% price extension and are only a buy if they open or move below the 33%. I also still have CPA, GPT, SKI, TLS and TSE meeting the rules. I didn’t identify any stocks meeting the sell rules. Read more…
It’s been a difficult year thus for to make profits following the Home Study Course (HSC). This goes hand in hand with the Australian share market as it is just not getting any real momentum and while the index is moving slowly higher it is more in a sideways movement. Most trades that we exited this year, were losers. For anyone just starting off with the HSC I would recommend to look for trades that carry less than 15% risk and possibly enter trades with less money than you would otherwise. Don’t get discouraged though. The market will pick up and you want to be ready for this.
It is important to cut the losers and on the other hand let the winners run. Take a look at ILU, which is up by almost 300% since we bought it. Whilst the Australian share market finished the week lower the profit of the open positions are up to over 14% again. This is mainly due to the fact that we got stopped out of two positions during the week with one of them (JHX) incurring the maximum 15% loss. This brings down the profit of our closed positions to 8.5%. Again this is not the true return on investment if you would reinvest your earnings, this figure would be much higher.
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The blog portfolio is edging higher and following the trend of the Australian 200 share index. The index is almost back at its last major high from February. This is in line with some of the major indexes worldwide, however the Aussie is still lagging behind unlike the Aussie dollar which is recording one major high after another. Whilst the strong Aussie dollar is fantastic when you are travelling abroad it is not good news for many of your corporations and this is holding up the market.
Looking at the top 100 stocks in Australia, I have identified a number of buys for the week and also saw many stocks that may fulfil the buy criteria (according to the HSC) in the next couple of weeks. There were no sell signals that I noticed. The new buys are QBE (QBE Insurance Group Ltd) and AMP (AMP Ltd), which I mentioned on my watch list last week. HVN (Harvey Norman), BOQ (Bank of Queensland) and TSE (Transfield Services) are stocks on my watch list for this week. They have the potential of becoming a buy during the week if the monthly swing turns up. Read more…
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
In midst of packing for our upcoming holiday, I managed to review the portfolio for the week. Again there wasn’t much movement in the portfolio, with the profit of our open positions declining due to two more additions (GPT and MGR) that finished the week lower. Just as I wanted to keep it short for the week, I have noticed quite a number of stocks that have given the buy signal for Monday and others that could be a potential buy during the week depending on the price development.
The buys according to my analysis are: TEL (Telecom Corporation of New Zealand) and ERA (Energy Resources of Australia). Following stocks need their monthly swing to point upwards in order to be a buy: SGM (Sims Metal Management Limited) 18.75 or higher, PRY (Primary Health Care) 3.79 or higher and TOL (Toll Holding Ltd) 6.14 or higher. PRY looks particular interesting with a double low for the dates 21st November 2008 (3.46) and 2nd July 2010 (3.45).
I also have a sell for the portfolio. WDC (Westfield Group) had two closes under the uptrend band.
The transactions for last week were: Read more…
The markets certainly look more bullish than bearish and the big question is if it will stay this way. We have added two more positions to the portfolio and have another 2 (maybe 3) stocks fulfilling the HSC buy rules according to my analysis. I have also noticed more than 15 stocks had a bullish outside vertical bar (BUOVB) for the week. This is usually a sign that the stock will continue to raise over the coming weeks.
As I have mentioned already we have added SKI (Spark Infrastructure Group) and DJS (David Jones) to the portfolio on Monday. We are still waiting for TOL (Toll Holdings Ltd) to go above 6.21 for a buy. For the week ahead I have also MGR (Mirvac Group) and GPT (GPT Group) as a buy, with SKI and DJS still flagged as a buy as well.
The transaction for last week were:
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