30th March 2007, Friday

The All Ords was finished up 33.10 points to 5989.80 buyoed by a frenzied media sector after Communications Minister Helen Coonan introduced laws to relax media ownership earlier than expected.

Media stocks took center stage with Western Australian Newspapers leading the charge by 98c to $15.63, Fairfax surged 5.06% to $4.98, and Kerry Packer's Publishing and Broadcasting Limited jumped up 82c to $19.85.

Media stocks might attract possible merger and acquisition activity soon when the laws take effect next week.

BHP Billiton put on 7c to $29.89, rival Rio Tinto added 63c to $78.81, Fortescue Metals was punished by a $1.28 to $20.19.

Cochlear rose by $1.30 to $64.72, Babcock and Brown climbed $1.07 to $27.47 after being named as Alinta's preferred bidder, along with Singapore Power.

My trading day:

I was pretty happy today as I got that lovely 70c/share dividend from Zinifex!

I sold off Perpetual after it showed signs of weakness. I wanted to trade in Origin but it opened @ 8.95 and would be risky as it has a lot of trouble in the $9 zone, which it only went past at the close so I didn't bother.

So no trades today, just grabbed the dividend! I'll make a yotube video for next weeks trading soon!

March the 29th, 2007, Thursday

The All Ords in defied a blood-trailed lead from Wall Street, gaining 32.40 points to 5945.70.

Four of the big five posted on modest gains with ANZ stepping up 51c to $29.85, NAB put 3c to $40.15. Financial heavyweight Perpetual Limited added $1.38 to close at $77.50.
BHP Billiton recovered from early morning losses to post 33c to $29.85, rival Rio Tinto suffered 12c lower to $78.18. LionOre was digesting its huge gains after Swiss giant Xtrata proposed a US$4bn takeover.

Origin had a strong day - pushing ahead 15c to $8.89, Woodside gained 33c to $39.55, posting its 6th straight gain.

My trading day:

Another great trading day!

I was on my way to the college but stopped at the ASX because I had no idea what happened to the Dow and such - a good friend there told me the Dow was down but oil surged to almost $68 for a moment last night.. not sure if its true but I hold this person in high regard.

Anyway he told me that the futures of Asian markets were pointing higher and that we would follow them, which is generally true and the All Ords did start recovering rather quickly. So I tagged along once again into Origin Energy - at $8.78, and I also bought Perpetual at $76.30 because I believe that its uptrend is secure and its due for a rise and boy were they some smashing calls!

Origin surged yet again to resistance @ $8.98 - I was waiting to see if it would break it but it bounced down to $8.92 so I just sold it off, happy with my profits. Pepertual kept surging to $77.50! I'm happy with that, i'm going to hold onto it for a couple of more days.

TOMORROW IS ZINIFEX'S CHUNKY 70C DIVIDEND!

March the 28th, 2007, Wednesday

The All Ords skated downhill by 39 points to close at 5913.3 following a weak lead from the US.

BHP Billiton fell 1% to $29.49, rival Rio Tinto shed 1.1% to $78.30. LionOre added another 1.25% to $20.30 after Swiss giant Xstrata launched a US$4bn takeover for the nickel company yesterday.

WTI Crude Oil surged to almost US$64 a barrel. Woodside Petroleum gained for a 5th day, adding 19c to $39.22, Origin Energy slipped a 1c to $8.74.

My trading day:

So I was sitting in a college lecture - tasking my attention between the shares and the lecturer! I saw the oil price surged and decided to once again try out Origin Energy, I went long on the stock at $8.78 and put a sell order at $8.93 - a modest amount below resistance.


So I closed my laptop and checked my pending orders lists later and wow lol, it surged to $8.98 - which means my order was executed so I was pretty happy! Decided to buy a meatball sandwich in celebration (it was delicious!).

That makes my 11th consecutively successful daytrade in Origin.

BHP/ZFX fell a bit but i'm hardly concerened, just gives me an excuse to buy more! Although I would like to see BHP hold above $29.50 so I don't waste my buys. Oil has gone up for 7 days now and really its due for a fall, so i'll be looking to short Origin tomorrow - I don't want to take a risk on Woodside because its intra day moves are just too awkward!

March the 27th, 2007, Thursday

The All Ords had a mixed session today, closing in the red by 18.20 points to 5952.30.

Resources were mixed with BHP Billiton, fizzling 0.8% to $29.80, whilst rival RIO Tinto jumped 80c higher to $79.80.

Zinifex powered 2.9% to $16.69 before going ex-dividend by 70c this Friday.

Swiss giant Xstrata pushed its $4 billion bid for nickel company LionOre, LionOre surged $2.46 to close at $20.05.

Biotech company CSL Limited vowed it will continue to test its CSL-111 drug, which aims to increase good cholesterol. CSL ended the day up 7c to 84.06, the stock is currently in the lead with Cochlear, Perpetual, Macquarie Bank, and RIO Tinto to become the first Australian stock to reach the $100 mark.

The big four banks pulled the bourse lower, with the exception of ANZ which climbed 4c to close at $29.58.

My trading session:

w00t! ZFX surged today which made me pretty happy! Probably mainly because of the dividend though, also Zinc futures trading went up in Shanghai today. I have no clue what that means but yeah, whatever!

BHP finally took a breather - it's still my long term stock so I keep accumulating small quantities in dips. As long as it holds above $29.50 I think the stock will rally to $32 in very little time and hopefully far beyond that (something it deserves!)

Uranium is going NUTS! Look at PDN/ERA/SMM - crazy! It's funny though. PDN/SMM posted consecutive losses yet they're on fire like anything.

Watch Woodside Petroleum - it broke its downtrend line at $38.50 - if it can hold around $38.50 I think this stock could start rallying, lets see!

March the 26th, 2007, Wednesday

The All Ords pushed ahead 37.4 point to close at 5970.5.

BHP Billiton, the world's biggest mining company, powered ahead by 84c to end at $30.04 after completing $3.5 billion of its $10 billion off-market share buyback.

Coles Group Limited reported a net profit after tax increase of 3.5% to $501 million for the 6 months ended 28 January 2007. The company said it was on track to deliver full year earnings of $787 million but anticipated lower. Coles shares were trading 22c higher to $16.22.

Merger fever once again hit the market, Swiss mining giant Xstrata is poised to bid $4 billion for Australian nickel miner LionOre. LionOre is currently in a trading halt, its shares last traded at $17.59.

My trading session:

Many short term investors/traders would have breathed a sigh of relief as BHP finally broke past resistance @ $29.50! I was up in arms cheering the stock!

I sold a partial amount of my stake primarly to fund money from my new powerhouse PC :P! But I bought more at the close as I think the bull has recharged is horns, and is now heading for a test of its all time high @ $32.

I sold off my stake in Origin @ $8.84, which I bought initially @ $8.67. I shouldn't have though.. as oil broke past resistance @ US$62, ORG will probably surge to resistance tomorrow which will annoy me :/, but none the less the profit is a piece of cake rather than a huge pie i'm trying to culminate!

I'm happy with my share performance, i'm holding significant amounts of BHP & ZFX at the moment, ZFX will unleash its 70c dividend on Friday which will be a great way to cap off a good month!

I'm veering my interest into oil stocks though.. I think should the All Ords break past 6000 and resume its rally, with oil bullish, I think oil stocks after almost an 8 month down-cycle + consolidation will pick up and join the party, they're one of the big sectors that have had no rally yet! So i'm keeping an eye on Woodside/Santos/Origin.

March the 23rd, 2007, Friday

The All Ords finished in the red today, -2.30 to 5933.10.

BHP Billiton, the world's biggest miner, approved a US$1.85 billion expansion project that aims to increase iron ore production, BHP finished -6 to close at 29.20.

WTI Crude Oil surged almost 4% to almost US$62 a barrel. However, the oil sector failed to track gains, with the exception of Beach Petroleum,which shot up 4.5c higher to close at $1.16

Qantas Airways dropped -3.06% to $5.06 a share after Balance Equity Management, which owns a 4% stake in Qantas, said it did not intend to accept the bid.

My trading session:

I was disgusted with Origin's performance today! I fail to understand how the stock closed down -12 to 8.68 when Crude Oil surged almost 4% last night to US$62 a barrel. I still hold the stock with a stop-loss just under support ($8.44).

I made no other moves today.

Next week's outlook:

Stock markets rallied strongly this week, (especially the German DAX!) so i'm expecting some profit taking next week.

I believe the Dow Jones will fall tonight as it's getting pretty tired of carrying the world economy on it's back, but otherwise it will be interesting to see if the All Ords can break past the all-time high of 6014 - which will probably rely on fierce Dow lead, or a strong commodity price rise.

Watch out for Zinifex giving its mammoth 70c dividend next Friday.

Have a good weekend!

My Portfolio

This post will explain what my trading principles/ethics are, and my selected portfolio as well.

How I trade:

My long term (3+ years) portfolio is bullish on mining stocks. In the medium term (weeks/months) I trade in other sectors looking for a decent move/decent result or to scour a great dividend. I play "short-term" (usually 1-3 days) or daytrade only on Friday's because that's my day off! On Friday's i'm happy to go long and/or short on shares that I like for a daytrade.

I believe in strong fundamentals for a company, it MUST have increasing profits, p/e ratio and such.. which is what makes the share price grow in a long-term sense. Most of my portfolio comprises of companies with solid fundamentals/management/ethics, with a word from friends who are professional analysts.

Technical Analysis: I only use charts to plot my buying points for long/medium term trades, indicators just look like a bunch of funny lines to me! I really only use Support/Resistance & Volume as indicators for my short-term trades, I really haven't found the other indicators handy for the 2 or so years i've traded so stuff them lol.

Listen! Bloomberg is my favorite TV channel, I could watch it all day and marry it. When I used to be a fulltime daytrader I just loved how quickly they would deliver breaking news which helped me execute some of my best trades!

Its always good to read/watch what other analysts are saying and then perhaps seeing if their views have a good point/basis for what they are.

Anyway without further Adu, my portfolio and why I trade in them:

BHP Billiton, world's largest miner (BHP) - BHP is a sound long-term trade, i'm convinced with its long mine life, good management, billion dollar projects and that the commodity boom is still around.

I keep accumulating BHP, and boy, has it been worth it! When it moves, it really moves! Would be nice if they pimped up the dividend though..

Zinifex, world's 2nd biggest Zinc miner (ZFX) - A rampaging cash-flow, 70c dividend, sound management and acquisitions is why I trade Zinifex. It's mainly a medium term play for me.

Cochlear, word leader in ear implants (COH) - I'm pretty proud of the work Cochlear do. One of my mates had an implant and I decided to look into it!

But other than that it also has a positive cash-flow! The Pharmaceutical stocks move very, very impressively when they are bullish hence my interest in this sector.

Perpetual, diversified finance (PPT) - Perpetual is an amazing medium term stock for those who love dividends. I continue to be blown away by its massive dividends, $2.67 per share is just out of this world. I play medium-term on Perpetual only to go after that dividend (ofcourse the stock must be in a bullish phase as well).

Woolworths, Australia's biggest food retailer (WOW) - I love Woolworths, I absolutely love the store! You can really see this company improve each time you go shopping - new pastries, more fruits, more variety, and most of all its service is kickass fast!

Other than that the stock is a very fast mover and has dominance over the Australian market at the moment, but, I would watch withdraw from playing in Woolworths should Coles be taken over by the likes of Tesco/Wal-Mart, because then it would be in for some very rough competition and might not be able to generate the good profits it has.

Origin Energy, Oil/Gas Producer (ORG) - Seems to be the only stable oil play in the Australian market. This is my short-term stock and I love daytrading in it. (Ofcourse it has good fundamentals/cash-flow too!)

Seek Online, Internet Ad's/Job Search (SEK) - Seek is a good company. Almost everyone i've ever spoken to looks for a job on seek; hell, seek is even in the papers so i'm pretty sure Seek & it's advertisers are happily married! Low price, increasing cash-flows, good share price moment.

March the 22nd, 2007, Thursday

(CLICK IMAGES FOR FULL PICTURE)

The All Ords surged 89.1 points to 5935.4, while the ASX/200 was 93.8 higher at 5955.7 on a busy trading volume of just over 2 billion shares changing hands.

Interesting to see how the All Ords fares in the upcoming trading sessions. I personally retain a cautious approach because the market just had a 'dead cat bounce' right after the global rout caused by China.


I'm currently buying medium/large-cap stocks because they are - in my opinion - more secure than small-caps, however, in this phase of the market, i'm buying only half the quantity than I otherwise would in my trades.


Today's Trades: ORG.AX

I went LONG on Origin (ORG) @ 8.67 - I reckon this company is good for day trading , Crude Oil rebounded at $58 (with the futures pointing up also ) yesterday - to continuse its ranging trend between $58-$61 at the moment.


The stock nicely rebounded off support at about $8.46, so there was good incentive to trade the share. It's easy to trade because its rangebound.

Tomorrow's Outlook:

Right now European markets are rallying strongly (1.5%) with the DOW futures pointing for a higher open, but will it hold?

I think it'll be a mixed trading session tomorrow, the market has had a very strong week and will probably take a breather towards the end of the day (who doesn't love closing their short trades for weekend cash?).

I'm back!

Apologies to the folks who were enjoying my blogs! I was just really busy with Christmas, Holidays, and now my studies but my passion for trading has persevered and i'm enjoying it now more than ever!

I'm setting a new blog here which will be only text/image based for the moment which I think will be good in a way as it saves me upload time, and you can pick out exactly what details you would like to see!

If you didn't see my daytrading blogs they're all on my profile in youtube @ http://www.youtube.com/profile_videos?user=vishalt

I hope you enjoy the new feature!