tradersams blog

sgx open

SGX:  Opened a position in Sino Gold today at $7.25.  Selected this position today based on the high movement causing it to show up on my heat map early in the day.

Quick analysis showed a share in a 3 month uptrend, and just below medium term resistance.  There have been 3 touches with the trendline I have drawn, so I’ll use it as an indicator for this trade.

Volume has been dipping over the last month and I would like to see this improve.  Looking at the moving average ribbon, the investors are holding strong, and the short term traders are starting to get involved in the share again.  I don’t know the reason for the gap up today – but then again, there’s not enough time for me to keep up with the news.

Probably not my best entry in a while – but now I’m in, I’ll manage the trade.  Selecting the share is not the major hurdle to me, its getting out the other side well that matters.

CPB continues

CPB:  Campbell Brothers – comment on my position… I’ve been thrown that curve ball that I don’t like to get – something that my plan doesn’t really cover.

Campbell Brothers has fallen through the ATR based stop loss I set – but is still above the rising trend line by a tad.  The reason seems to be that Campbell Brothers has joined the list of companies over the last few months that are asking for more money by fund raising from the markets.  So – the price is artificially low, and looking at previous shares that have done this, holding seems to have been a wise move… ok, that’s not a detailed analysis and may well have to research that (doh – homework!).

So the new plan is to lower my stop loss price, which is certainly a potential hit to my profit on this trade.  Technically my plan covers me if the share drops further, but it is a bit ‘grey’ at this specific point in time.

The real question here is – do I want to write a rule for how I respond to these situations?  I’ll have to think how to test that.

… and look at that AUD …!