Dave’s Trading Diary – Reporting Season, The Best Time For Signals Both Good And Bad
 Buys this week: David Jones (DJS), Bradken (BKN), GUD Holdings (GUD).
Hi guys,
What a fantastic time of year reporting season is. For most of the year a company’s share price is based on speculation or other external factors like weather, consumer sentiment, interest rates etc. But twice a year we get the company’s actual results and how well or badly they have really been doing.
This also means that entry or exit signals around this time are much better – as they are more often based on these actual results and whether the market likes them or not! So no doubt over the next few weeks we will see some fantastic new entry and exit signals.
How about individual shares at the moment?
Since last week our only two open trades, IGO and RIV are going well – IGO up marginally and RIV still above its trend line.
This week I’ve added DJS, BKN and GUD to the buy list after getting entry signals on a weekly chart. This is in line with my philosophy of getting back to basics, and following the system to the letter. After all - what good is having a system if we don’t use it? My only concern, of course, is that the All Ords index is in a sideways to down trend.  Check out the diary for full details like the signal used, the amount of risk, and of course stop losses.
Looking at stocks in general also, there are more stocks in a down trend than in an up trend at the moment. The overall market is refusing to go up or down consitently though – instead preferring to meander mostly sideways over the last 10 months. This doesn’t mean that there will be no entry signals – individual stocks can still outperform or underprform the market.
In addition to the new video course I’m working on (it will be available very soon with new signals and tools, and it’s free), I’m also working on a system for shorting the market – just in case this sideways marathon turns bearish. Best to be prepared!
Happy trending guys,
Dave
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August 1, 2010
Posted in: Dave's Trading Diary
2 Responses
Gday Dave
Thanks for sharing your diary.
I am interested to know how you scan for Dow theory buys or sells for that matter.
Hi James,
Great question – to find them I currently have a list of 100 or so charts that I have back-tested and earned a 70% win percentage or greater on. Out of this list, I simply eyeball the charts once a week for entry signals according to the rules. It doesn’t take too long to do. As for the rules themselves – the free course has all the info!
Hope this helps,
Dave
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