Confessions of a Day Trader: A Big 4 in a trading halt? Take my money…
News
Each Monday, 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.
Markets on Friday night got a bit of a horn on and so today I think I will be struggling to find a trade.
ANZ remain suspended for all of today and this is something of a first for me to experience, since starting this column some three years ago or so.
I don’t recall a major company worth $60bn being suspended this way for a whole trading day. Funnily enough (see chart) I had noticed them not performing that well over the last few trading days and now I know why!
Had a curious local in the cafe today asking about trading and we were looking and talking, so I got a bit distracted and went a bit early on CBA, as when watching I thought they could go lower but had to show them how it all works.
More rain today and rest of the week, so start off with $190 gross to buy an umbrella with. Hopefully ANZ back on tomorrow and a trade to be made.
Recap
Bought 1,000 CBA @ 93.30
Sold 1,000 CBA @ 93.49 ($190 profit)
ANZ are not back on today, so that’s that. Have to look around elsewhere.
RIO pop up as a potential, having fallen from $97.50 and down $1.70 lower or so.
Pick up 1,000 and they just go lower. Have a second go at $95.21 and watch them head towards trading with a 94 on the front. See chart.
Plus $340 and RIOs was the one with the biggest day range today on my watchlist.
Now, maybe ANZ will be back tomorrow!
Recap
Bought 1,000 RIO @ 95.73
Bought 1,000 RIO @ 95.21
Sold 2,000 RIO @ 95.64 ($340 profit)
Still no ANZ today, which I don’t fully understand or really care to understand, though my waters tell me there will be a trade when they come back on and the longer they take, the better the trade will be (or should be).
CBA come through but a bit later than usual in getting set, like 45 mins. At the end of the day, they opened at $96 and last trade (4.10pm) was $96.02, so only 2c difference. Amazing.
Plus $280 and will shut up about ANZ, until they come back on.
Recap
Bought 1,000 CBA @ 96.00
Sold 1,000 CBA @ 96.28 ($280 profit)
Hey hey hey, ANZ finally decide to turn up this morning and start trading. At last! However they open up before falling as expected.
They actually open at $22.32 and I get set at $21.61 or almost 70c lower. Then I have to double down, as surely they have found a bottom at $21.34. But no, they have to hit $21.27 before they recover.
Volume in them was 17.5m and they close 39c below their opening price.
RIOs had just a wild ride, with a day range of $2.63 on a volume of 1.8m, though CBA was a little bit quieter with a range of $2.23 on 2.66m. Amazing.
Finally, the waiting for ANZ brings in a nice $420 and RIO allowed me to have two goes to bring a smile to my face.
Finish the day with a happy ending! Plus $1100!
Recap
Bought 2,000 ANZ @ 21.61
Bought 4,000 ANZ @ 21.34
Bought 1,000 RIO @ 95.53
Bought 1,000 CBA @ 95.92
Sold 1,000 CBA @ 96.11 ($190 profit)
Sold 1,000 RIO @ 95.75 ($220 profit)
Sold 6,000 ANZ @ 21.50 ($420 profit)
Bought 1,000 RIO @ 94.95
Sold 1,000 RIO @ 95.22 ($270 profit)
After yesterday’s heroic effort, today turns out to be a ‘doughnut’ day, as everything on my watchlist seems to have a rally and not look back.
CBA manages to have a range of $1.48 on a bigger than usual volume of 4.5m and peaks around 1.30pm and their chart just about sums up the day.
End the week plus $1910 gross or $1649 net and happiest trade was the ANZ trade, after they came back on from their trading halt. A bit of a wait but worth it.
Next week we have some inflation figures coming out, so hopefully I get a bit more volatility than today.