Dave’s Trading Diary: Strong Industrials Sector Brings Some Buys

This excerpt from the trading diary is for educational purposes only and is not to be interpreted as trading or investment advice.  See Terms Of Use here.

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The stock market is always available to teach us lessons, if we are open to them.  I think every few months I will learn something new as the market gives me its feedback, either rewarding me with money or punishing me with losses.

Over the last few months the Australian Stock Exchange has been floating sideways, and I have stayed out of the market waiting for a solid move to evolve.  As I waited patiently for the market to show its intentions, a wonderful thing happened.  Two sectors, the Telecommunications sector and the Utilities sector began outperforming the All Ordinaries (see strongest sectors report).  Stocks within these sectors were happily rising, and giving entry signals as shown in our courses and systems.

Stocks like APA, DUE, HDF, INN and TLS all made new up trends, and kept them.

And now, market volatility is falling further, and more stocks are getting entry signals.  Namely stocks in the Industrials Sector, which has moved into the strong sectors, and some others that meet my criteria.

Volatility Index (VIX) Click to Enlarge:

Stocks like COF, FKP, GRR and SGM have been added to the diary this week, and market permitting I hope to add more over the next few weeks and months.

Of course, it pays to be ready for anything in the stock market, stop losses are very important, and I’ll be ready when the market turns around.  Click here to leave a comment in the comments section below!

Happy trending!

Dave McLachlan

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January 22, 2012  Tags: , , , ,   Posted in: Dave's Trading Diary

4 Responses

  1. Matthew - January 22, 2012

    Hey mate,

    HDF – been holding since sub $1.00. Such a boring stock, but ultimately it’s performed extremely well, considering I bought it back then as a defensive strong yield. Received the APA Group Offer for them last week. It was just a bright orange booklet with a white circle and the word ACCEPT on the front. Felt like something David Tweed would send out.

    TLS – Never though I would say this, but the trend is looking nice, it’s got a great yield, lets hope it holds on $3.25.

    VIX – 2 months ago, who would have thought we’d be at these levels!?!

    All the best

    Matt

  2. Dave McLachlan - January 22, 2012

    Nice one Matt!

    I had HDF for a while too, but did not buy in again after the August falls. Really great stock.

    Yes, thank goodness the VIX has settled down a little. Of course, there’s no doubt we’ll see a rise above 30 in 2012 again. It’s not the nature of the market to sit still :)

    - Dave

  3. Ray - January 22, 2012

    G’day Dave,
    My charts suggest CAB, PTM, DTE and, for the punter, AQD are worth a look too.

    TLS has potential of NBN payout in form of a special dividend (I hope). Unsure why sellers entered last week when ff dividend on the way soon and the NBN bonus possible from TLS.

    COF has very interesting charts, daily, weekly and monthly.

    FKP,GRR have magnificent (for me) monthly BUYS blazoned atm.

    SGM looks good too.

    Looks like you and I concur technically! Hope that means we’ve done good work!? Will depend on global influences of course.

  4. Dave McLachlan - January 24, 2012

    Hey Ray, absolutely. Everyone’s eyes are on Europe right now.

    Of course, if it turns around significantly we must be ready to short if necessary. One thing is for sure, the markets are never dull :)

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