Confessions of a Day Trader: CBA goes ex-dividend – time to roll the special dice
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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.
A plain Jane day today and cut down BHP buying by half my usual size as I was just not sure.
They came good on me below $38.00. Dipped and rallied, so managed to catch that, but nothing else.
Up $200. Not much more I can add. Just boring.
Bought 1,000 BHP @ 38.75
Sold 1,000 BHP @ 38.95 ($200 profit)
Set aside today to really concentrate on just one stock, which was CBA. They have been acting differently than usual. I wanted to see if these short sharp movements have a time attached to them or if there was a particular pattern.
They opened at $102.19 and by 10.30am they were $101.24, so almost $1.00 difference.
Heading towards 11.00am they touched $101.40 and then went into a decline downwards heading to 11.30am.
They touched $101.14 and then started to rally around 11.15am and suck me into buying some at $101.32 as they look like they will hold above $101.00.
Just in case they do break down I put in a limit buy at $100.85, for if they do a few stop losses may be triggered. Heading towards 11.30am, they do break below $101.00 and touch $100.74 before bouncing, so my limit order gets filled.
At bang on 11.30am they rally strongly and I’m out at $101.25 for a $730 profit and they keep going straight upwards and touch $101.62 before falling back. Up 80c in under 15 mins.
So I got sucked in a bit early and was saved by a lower limit order and then out two-thirds into a very quick rally. Tomorrow I will pick a limit and stick to it and not chase a trade. So may do something or may do nothing and 11.30am may be the new 11.00am trade. Let’s see.
Bought 1,000 CBA @ 101.32
Bought 2,000 CBA @ 100.85
Sold 3,000 CBA @ 101.25 ($730 profit)
The only trade I could find today was in A2M, who were down 9% on their pre-opening news that they face delays in the USA for their baby formula.
So, news out, get oversold, buy some for the bounce and then sell them and walk away.
Made $150 gross with $10 commission.
Got to be happy with that!
Bought 2,500 A2M @ 4.63
Sold 2,500 A2M @ 4.69 ($150 profit)
Waited for CBA to crack below $101 having been around $102. Got a nice bounce and then moved onto RIO who were XD. Like these trades as we know the dividend. Same company, just a bit cheaper.
Caught them below $96 and waited for the bounce. Nice.
Happy to walk away for the day by 11.30am up $870 but just couldn’t help myself ansd watch CBA start to fall again. Had one go and then thought ‘eff it’ and went for another 1000 and watched and waited. They fell more but I hung in there as they had been above $102.
So big range in CBA but don’t know why but they’re going XD soon. Maybe there are a few people putting on their strategy plays. Who knows?
Up $1305 and think RIOs will be higher next week.
Bought 1,500 CBA @ 100.71
Sold 1,500 CBA @ 101.13 ($630 profit)
Bought 1,000 RIO @ 95.98
Sold 1,000 RIO @ 96.22 ($240 profit)
Bought 1,500 CBA @ 100.52
Bought 1,000 CBA @ 100.41
Sold 2,500 CBA @ 100.65 ($435 profit)
A slow day today. I manage to lock in a $40 profit in RIOs which only came good in the 4.10pm match up. Had to wait a couple of hours even for that to happen.
CBA had a day range of less than $1.00, that’s how slow things are today. They go XD next week on the 17th – $2.10 a share fully franked at 30% tax rate.
Could be a good day for a punt then. Otherwise hoping for a bit more volatility. Australian 10yr bonds are back up to a yield of 3.40%, having been below 3% at the beginning of the week, so we shall see.
For the week, up $2425 gross or $2039 net.
Bought 1,000 RIO @ 95.37
Sold 1,000 RIO @ 95.41 ($40 profit)