Monday, January 18, 2010

Mixed but the trend is holding. Mon Jan 18

I'm back and feeling refreshed after a week on the South coast of New South Wales. Looking at the Xjo index and a few of the larger overseas indices, it looks like we're having a mild correction although I don't see signs of a top having been made.
I left one part position in Stockland and I didn't quite realise how relaxed I'd be so really I should have sold before leaving. The stock fell from 406 to as low as 387. I'm long at 409. Having stuffed up, I can see that it has made a small 5 wave pattern down and today the stock has rallied above the highs of Friday. All things considered, I'll stay long with a tick below that 387 low as a stop.


The featured stock for the day is Arrow Energy. This had the 3rd wave surge which I traded and while I've been away it has completed a little correction. Last Thursday there was a small buy signal as the stock traded above the bar with the correction low. The bounce was sluggish on Thursday and Friday though so today there was an opportunity to buy without having missed out on very much. I'm long 11000 at 441. This is a quick trade with the first target being a minor new high. It's actually had that already with a sale at 452. I could have sold half there but didn't. At the moment, the Xjo futures are running so I might get another opportunity. I'll then use a trailing stop and the 60 minute chart to try to exit the rest.


2.10 Arrow Energy is back up near the day's highs at 451 and I've sold out 6000 at 450 for a profit of 9 cents per share giving a total of 540 dollars. Just to reiterate, I see this as a quick spike to a new high which is why I'm left with just 5000 shares.

4.10 No further changes. The market has had a strong day, rising from an early loss of about 30 points and climbing all day to finish up 11 points. It's the first day that a majority of market participants would be back from holidays and the volume has been good. Arrow closed at 452.

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