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.
Monday October 17
All the banks went down today, though ANZ managed to rally a bit and go up for the day. So today was the turn of the miners, who were also weaker but rallied from their lows.
Managed to hitch a ride on RIOs who had a very good end of day rally, as did FMG.
I think the banks were awaiting news from the UK, as the BOE had stopped bond buying on Friday, so we should know more tomorrow.
Up $215 on the RIOs whose day range was $93.05 to $94.69, compared to CBA’s $97.91 to $98.88 and both with smaller than usual volume.
Recap
Bought 500 RIO @ 93.28
Sold 500 RIO @ 93.71 ($215 profit)
Tuesday October 18
OK, everything in the UK gives some hope re bonds and the A$ has a rally as well. The only thing on my watch list showing red was WDS.
Had two goes with them and could have had a third, but thought it was too obvious, so just sideswiped them.
CBA had a high of $100 exactly, which just goes to show how round numbers can dictate company valuations.
Finish the day up $545 and that includes a small trade in 500 CBA, which was an 11.00am special.
The second trade in WDS was amazing as they shot up, bang, and my eyes had to hang on tight just to keep following their move. See chart – amazing! They didn’t stay above $33 and tried four times to only get sold down.
Recap
Bought 1,000 WDS @ 33.06
Bought 1,000 WDS @ 32.95
Sold 2,000 WDS @ 33.06 ($110 profit)
Bought 500 CBA @ 98.83
Sold 500 CBA @ 99.19 ($180 profit)
Bought 1,000 WDS @ 32.78
Sold 1,000 WDS @ 33.03 ($255 profit)
Wednesday October 19
Well, CBA crack the $100 level straight out of the gates and open up at $100.30 and $100 actually becomes their day’s low.
Picked up 500 on a dip, which worked out OK. Not big but OK and I missed them at 11.00am but good to see them act like yesterday again.
But my first buy very early was in WDS as they opened very low. Then it was BHP’s turn and I cut them for a small profit as getting bored with them hovering in and out of profit, after selling the WDS.
Up $315. An interesting article appeared in the AFR, explaining why so much trade goes through in the 4.10pm ‘match’ and because of the frequency traders front running orders, which they can’t do in the match. Hence the bigger sized trades. Good for us small players but not good for the instos.
Recap
Bought 1,000 WDS @ 32.35
Bought 500 BHP @ 39.27
Sold 1,000 WDS @ 32.54 ($190 profit)
Sold 500 BHP @ 39.33 ($30 profit)
Bought 500 CBA @ 100.13
Sold 500 CBA @ 100.34 ($105 profit)
Thursday October 20
Slowly slowly catchy monkey today and got a get out of jail card opportunity which lasted for about 5 mins.
Was staring at a loss of over a grand at one point and then at 3.15pm all of my stocks had a burst up and as I scrambled to sell them, they were falling just as fast as they went up.
See charts for what I mean.
Up exactly $200 after a fair bit of button pushing and nail biting, especially from RIOs.
Recap
Bought 1,000 FMG @ 16.85
Bought 500 RIO @ 92.41
Bought 500 BHP @ 38.62
Bought 500 RIO @ 91.70
Bought 1,000 BHP @ 38.20
Bought 2,000 FMG @ 16.59
Sold 1,500 BHP @ 38.56 ($330 profit)
Sold 3,000 FMG @ 16.63 (-$135 loss)
Sold 500 RIO @ 91.86 (-$97.50 loss)
Sold 500 RIO @ 92.26 ($102.50 profit)
Friday October 21
Hang around in the waiting room of trading until just before 11.00am and start out with CBA as they are around the $99.00 level. Then some NAB and to balance things out some RIOs and BHP.
Have to double down on CBA, as they fall another 50c and instead of adding to the other miners, pick up some FMG. Double down on RIOs and pick up 1000 BHP.
Now I am just waiting and waiting, as I feel that everything should bounce at some point. Eventually my sea of red starts to turn and at 1.30pm I sell out of everything, even RIOs for a $10 profit, as I want out.
From 11.00am to 1.30pm is a long and draining watch and wait for me but all comes out OK today.
Up $870 today and the charts really tell today’s story. Makes it $2145 up for the week gross and $1847 net.
Long live the lettuce!
Recap
Bought 500 CBA @ 99.01
Bought 1,000 NAB @ 31.34
Bought 500 RIO @ 92.28
Bought 500 CBA @ 98.52
Bought 1,000 FMG @ 16.49
Bought 500 RIO @ 91.62
Bought 1,000 BHP @ 38.31
Sold 1,000 CBA @ 99.20 ($435 profit)
Sold 1,000 FMG @ 16.70 ($210 profit)
Sold 1,000 NAB @ 31.46 ($120 profit)
Sold 1,000 BHP @ 38.41 ($95 profit)
Sold 1,000 RIO @ 91.96 ($10 profit)