What a year, volatility was king, I don't mind the markets being closed for a few days over Christmas and New Year, I don't have to watch my portfolio get bounced around. Your's truly has four stocks in his portfolio at the moment and two tanked this year (dropped by more than 40% ), one's done nothing but oscillate between my entry price and drop as far down as 20% below entry just to bounce back. My star pick over the last 2 years has been Silver Lake Resources (SLR) it's kept my faith that money can still be made in the market. Ironically what caused the share price to really move in the last 2 months was not the reason I got into it. I got in because of their substantial gold reserves but the share price rallied on the discovery of a large copper deposit at one of their tenements. I'm of the view that gold will really appreciate over the next few years due to all the currency debasement going on in the world and that's why 50% of my portfolio is invested in gold producers. I'm still waiting for the pay off, lol.
Seems like a lot of market participants have packed their bags and called it quits in the stock market, they'll be back like a crazed dog chasing a moving car. The average daily turnover in the ASX is $5 billion well short of the pre-GFC turnover of $8 billion dollars plus. I read that in order for the ASX to rise some $7.5 billion dollars plus needs to trade on a daily basis.
Some readers have requested the return of some reports in particular the "Stocks within 5% of 52 week highs" and the "Daily short selling" report. I should be able to accomodate these requests. Any other requests while I'm at it?
A new report I'm looking to implement is stocks that close above and below their 200 day moving average. It's a technical tool used by a lot of traders to signal a change in a long term trend of a stock or commodity. I did some research regarding this indicator and found a number of stocks that either sky rocketed after closing above their 200 day moving average or plunged after closing below their 200 day moving average. I guess it's because a lot of professionals are using this technical indicator as we as all the automated trading systems are programmed to act on it, who moves first wins.
That's it for now, Merry Christmas and happy new year!
Seems like a lot of market participants have packed their bags and called it quits in the stock market, they'll be back like a crazed dog chasing a moving car. The average daily turnover in the ASX is $5 billion well short of the pre-GFC turnover of $8 billion dollars plus. I read that in order for the ASX to rise some $7.5 billion dollars plus needs to trade on a daily basis.
Some readers have requested the return of some reports in particular the "Stocks within 5% of 52 week highs" and the "Daily short selling" report. I should be able to accomodate these requests. Any other requests while I'm at it?
A new report I'm looking to implement is stocks that close above and below their 200 day moving average. It's a technical tool used by a lot of traders to signal a change in a long term trend of a stock or commodity. I did some research regarding this indicator and found a number of stocks that either sky rocketed after closing above their 200 day moving average or plunged after closing below their 200 day moving average. I guess it's because a lot of professionals are using this technical indicator as we as all the automated trading systems are programmed to act on it, who moves first wins.
That's it for now, Merry Christmas and happy new year!
Hi EDF2099,
ReplyDeleteFirstly, a grateful thank you once again for your blog!
"What a year, volatility was king...Your's truly has four stocks in his portfolio at the moment and two tanked this year (dropped by more than 40% ), one's done nothing but oscillate between my entry price and drop as far down as 20% below entry just to bounce back..."
Indeed it was! I've done nothing this year but watch my capital die a death by a thousand cuts.
I assume by the drawdown you're willing to take that you're more an F.A. guy. I am (was?) willing to go as low as 60% being a trader of F.A. (to choose stocks)/T.A. (to finetune entries) but think I have to bite the bullet and go full Momentum and take piranha bites wherever I can - this no longer being a rational market. Which brings us to..
"I'm of the view that gold will really appreciate over the next few years due to all the currency debasement going on in the world and that's why 50% of my portfolio is invested in gold producers. I'm still waiting for the pay off, lol."
So much undervaluing I want to jump in straight away but I've learnt my lesson, haha. It's mostly technical signals for me from now on (at least until the fear subsides). You never know what's around the corner; heck, even your SLR copper result could've provided a few coins for those just reading the 'tea leaves' (eg. your blog's New Highs; Biggest Moves)
"Seems like a lot of market participants have packed their bags and called it quits in the stock market, they'll be back like a crazed dog chasing a moving car."
On reflection...that now doesn't seem to have been such a bad idea... :'-( . "Hope is the last thing that dies in man; and though it be exceedingly deceitful, yet it is of this good use to us, that while we are travelling through life, it conducts us in an easier and more pleasant way to our journey's end."
~ François de la Rochefoucauld
"...Any other requests while I'm at it?..."
That 5% within 52 week high sounds pretty good, ditto the 200 day M.A. I put my votes in for:
1) In addition to the approximately 52-week high, could you program in an All Time High list? (within 5% of course)
2) A Bollinger breakout (ie. closes outside the parameter) both to the upside and downside?
"That's it for now, Merry Christmas and happy new year!"
Wishing you and your loved ones a Healthy, Happy and Profitable Christmas and New Year! (in precisely that order of importance! :p )
Oh Crap! I chose that username against Blogger dot com, not your blog!
ReplyDeleteSorry!
Your right fundamental analysis is at the core of my investment approach, but the last couple of years the markets been behaving much differently compared to prior 2008 and fundamental analysis lone has returned little joy.
ReplyDeleteI've been very stubborn, close minded and even anti charting/technical analysis but I'm slowly opening up to it and am looking to use it for "market timing" purposes. What started to turn me around was listening to a ASX podcast with Julia Lee where she discussed market timing and she went through using the 200 day moving average.
Thanks for the reply.