Each week, Stockhead’s resident day trader gives us a peek at the highs and lows of his trading diary and hints at what might be coming this week.
Platform used: Marketech
Round Trip: A round trip is $10 up to $25,000 and then above $25,000, commission is at 0.02% in and at 0.02% out.
Rules of engagement: Never hold any positions overnight (unless forced) and try to avoid any suspensions (if possible). No shorting.
Monday March 20
Big today, with everything coming out of the traps higher on a bit of a relief rally but then it ran out of puff.
Every stock was showing green at 11.00am, so I had nowhere to go. SUN popped up as an 11% faller and they gave me my first win of the week.
Then I had to wait and wait before having another go. CBA’s range today was open at $95.20, low of 95.06, high of $97.13 and their last trade was $96.08.
I had to wait till just after 1.30pm to have a go and it was a quickie. FMG and WDS let me down today, as I really was trying to escape bank-related but RIOs and BHP did me proud.
I could feel everyone’s nerves through the screen and stock movements. RIOs had a day range of $2.65, as an example. The problem is that anything could be announced when the market is open, which is why even Bitcoin has shot up.
Up $540 after taking in some of those losses. Now we wait for 10.00am tomorrow.
Recap
Bought 2,000 SUN @ 11.56
Sold 2,000 SUN @ 11.60 ($80 profit)
Bought 1,000 FMG @ 21.12
Bought 1,000 CBA @ 96.24
Sold 1,000 CBA @ 96.40 ($160 profit)
Bought 1,000 WDS @ 31.18
Bought 2,000 FMG @ 20.98
Bought 2,000 BHP @ 42.97
Bought 1,000 RIO @ 114.00
Sold 1,000 RIO @ 114.26 ($260 profit)
Sold 2,000 BHP @ 43.12 ($300 profit)
Sold 3,000 FMG @ 21.00 ($80 loss)
Sold 1,000 WDS @ 31.00 ($180 loss)
Tuesday March 21
Mmmmm. One of those days today. CBA came in with a classic, where they hovered around $97 for ages.
I only know this because I was hanging on. They would break up towards $97.03 and then come back to $96.95.
Kept doing this and I’ve seen it before, and I’m thinking I should double up, as at some point it will take off.
My thoughts must have done something as they suddenly took off and I locked in a profit. Then at the end of the day they slumped.
Now, have look at FMG’s chart. There were a few yeah/nah moments but they kept drifting and then got really whacked. I think the market is a bit long in the tooth with all the different hats Andrew Forrest wears.
Anyway up $270 and it could have more, and it could have been less!
Recap
Bought 1,000 CBA @ 96.91
Sold 1,000 CBA @ 97.18 ($270 profit)
Wednesday March 22
Someone came into my cafe and asked me if I knew anything about Weebit Nano, as he had some in his SMSF. I said I had heard of them but don’t know anything about them.
Turns out that they are/were a $1.2bn company, as I found out, when they popped up on my list of market fallers, down 19%. Since he came in and asked me about them, they have fallen 29% and today’s fall was a classic.
Their range today was: Opened at $7.11. High $7.30. Low $5.54. Last $5.54 on 4.29m shares and I got involved in them when they broke down below $6.00. Managed two goes before walking away into the sunset with contentment.
Up $790 and today’s trading in was classic 101 because of others’ stop losses being triggered around a whole number ($6.00).
Recap
Bought 1,000 RIO @ 115.56
Sold 1,000 RIO @ 115.75 ($190 profit)
Bought 2,000 WBT @ 5.95
Bought 2,000 WBT @ 5.86
Sold 4,000 WBT @ 6.00 ($380 profit)
Bought 2,000 WBT @ 5.85
Sold 2,000 WBT @ 5.96 ($220 profit)
Thursday March 23
Both FMG and RIO were trending down today, as everything else on my watch list was going up or hanging steady.
After opening up at $115.31 and watching them for a while, I had a cheeky bid in at $113.80, after they started to head $1.31 lower and towards $114.00.
Well, it only came in and even though it took a few goes in and out at their $114 mark, they eventually went on a rally. I was also set in FMG, though had to go twice.
You could have bought 100,000 plus in the mid teens – see chart. It always blows me away how sometimes stocks do what they do and for no logical reason.
Anyway, as RIO rallied, so did FMG and I did leave a bit on the table, managed a total gain of $540, which just happens to match Monday’s effort.
Recap
Bought 1,000 FMG @ 20.53
Bought 1,000 RIO @ 113.80
Bought 1,000 FMG @ 20.25
Sold 1,000 RIO @ 114.22 ($420 profit)
Sold 2,000 FMG @ 20.45 ($120 profit)
Friday March 24
Come in today and all the news is about a shorter attacking Block, which trades in the USA and over here with the ticker SQ2, as it used to be called Square.
I love these opportunities because a) the news is already out before they open and b) at some point a short seller has to buy back to cover their position.
So, SQ2 closed at $108, opened at $91.99, had a high of $93.27, a low of $86.30 and last at $88.94 on 990,000 shares.
Wow, what a day range. $6.97!
Got in very early and caught the first wave of short covering and then waited. When I did wade back in again the in and out this time took a bit longer.
All of this distraction left me only looking at this one stock and by the end of the day, my eyes really were SQ2’d. Got a bit nailbiting in the middle of the day, waiting for a short squeeze to come along.
Ended today up $625 and for the week up $2,765 gross and $2,375 net and this week was like going to Dreamworld via an iMax computer screen and never needing to leave home/office/cafe/beach/pub or Nelson Bay.
Recap
Bought 500 SQ2 @ 92.65
Sold 500 SQ2 @ 93.14 ($245 profit)
Bought 500 SQ2 @ 89.50
Bought 500 SQ2 @ 88.28
Sold 500 SQ2 @ 89.23 ($170 profit)
Sold 500 SQ2 @ 89.31 ($210 profit)