DAILY TRADING ALERTS

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Ralf Morris
6 years ago
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1 DAILY TRADING ALERTS Date: Tuesday May 17 Please note that this information is general advice only & is current only for this edition of the daily alerts. The information will be superseded by the next edition. US market rating Australian market rating Note to traders* The publishers of this article/information/promotion wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article/information/promotion The US stock indices advanced nicely overnight but there was some selling late in the session so this was not a definitive move by any means. The oil price continued its rise and reports of Warren Buffett taking a $1 billion stake in Apple fired the market up. However let s keep it in perspective, $1 billion for Buffett is barely ice-cream money, this is hardly a move of any real commitment as it represents only 0.2% of Apple. The oil price rise was thanks to supply interruptions in Nigeria (will be temporary) and in Venezuela (may be long term as their economy collapses and civil war looms as possible). However the general market liked the prospects of oil heading towards $50. Virtually every stock in the US portfolio advanced and it was another solid night for precious metals stocks and there were also some gains for the medical devices and aerospace / defence stocks. It was encouraging to see precious metals stocks hold up so well in the face of some more blatant attempted manipulation in metals pricing, which appears to be having less and less impact because prices rebounded in Asian trading today. The report is that someone decided to sell 18,000 gold contracts worth $2.3 billion in the space of 10 minutes. Anyone who does that clearly has the motive to depress the price. If you owned that much gold and wanted to then you would gradually so as to minimise the impact on the market, not dump it in one go. The goal is to scare gold investors into selling and thereby triggering a cascade effect but after 4 years of a bear market there aren t many weak hands left standing gold is now owned by

2 investors who know what they are doing and they aren t so easily scared out of their positions. I also think it highly likely that the start of the Shanghai gold fix is helping to negate the manipulation of the gold price in London. See below for the intraday charts from last night. Here is a tidbit of information relating to gold and is a situation that could provide a trigger for a huge future spike in the gold price. Apparently for every ounce of gold in the Comex warehouse, there are 542 individuals with a claim on it via the futures market. That means that 541 people are going to miss out if the demand for physical delivery ticks up. This is the same as a run on the banking system which has lent out 10 times or more of the deposits they have received. The gold futures market is massively leveraged and it wouldn t take much to tip it over as this imbalance between physical holdings and futures holdings is like an inverted triangle. Over the last decade there has been a huge movement of gold from the West to the East (Russia, China, India and Middle East) so the future control of the world s financial system is changing hands, make no mistake about it. Local gold stocks were again firm today with BLK continuing to advance strongly, up another 4% today but there was a bit of mild profit taking in BAL and SRX. The small initial downside in BAL was probably disappointment that the company did not upgrade guidance in their market update today. However they retained previous guidance which provides for a 340% lift in EPS from FY 2015 so not sure what the market wanted is this not enough. The stock trades on a forecast P/E of just 17 times so this remains a strong growth story which still represents good value. The main index rose by 0.7%.

3 RECOMMENDATION TABLE FOR OPEN POSITIONS AUSTRALIAN STOCKS Stock Original entry Initial Category Trailing Current price Entry Date If you don t own it BBOZ $29.90 $ /1/16 BDR $0.24 $0.16 $ /2/16 $0.28 DRM $0.79 $ /2/16 $0.85 NST $3.79 $ /2/16 OGC $3.60 $4.71 2/3/16 SRX $30.00 $27 1 $ /3/16 BAL $11.14 $ $ /3/16 BKL $150 $110 1 $176 12/4/16 BOE $0.053 $ $0.047 Highly speculative trade 18/4/16 BLK $0.455 $ $0.55 3/5/16 $0.50 POTENTIAL TRADES BEING TRACKED AUSTRALIAN STOCKS Stock Category Recommended entry Initial Current price REA 1 $48 $55.74 On hold RHC 1 $58.00 $50 $71.27 HSN 1 Below $3.20 $3.51 On hold BGA 1 $6.35 On hold CSL 1 Below $96 $113 On hold IPH 1 tba $7.10

4 RECOMMENDATION TABLE FOR OPEN POSITIONS AMERICAN STOCKS Stock Original entry Initial Category Trailing Current price RIC $5.15 $4.20 $8.73 Profit $7.39 Date entered 23/3/16 ABX $13.91 $10 1 $ /4/16 If you don t own it GDX $22.78 $18 1 $ /4/16 GDXJ $32.58 $26 1 $38.07 Profit $ /4/16 NEM $31.23 $25 1 $ /4/16 PAAS $12.25 $ $15.79 Profit $ /4/16 FNV $67.75 $59 1 $ /4/16 SSRI $8.14 $6.80 $ /4/16 SLW $18.50 $ $ /4/16 Below $20 ITA $ $110 1 $ /4/16 RTN $ $122 1 $ /5/16 HL $4.14 $3.65 $4.42 9/5/16 BSX $22.15 $20 1 $ /5/16 TMO $149 $140 1 $ /5/16 POTENTIAL TRADES BEING TRACKED AMERICAN STOCKS Stock Category Recommended entry Initial Current price SDS Tba - on hold $18.68 QID Tba - on hold $30.68 RWM Tba - on hold $61.66 Exchange 2 times leverage ETF on S&P500 2 times leverage ETF on Nasdaq QQQ unleveraged ETF on Russell 2000 index

5 Recommendation table Key THE MARKET RATINGS ARE; Green the best trading conditions where it may be appropriate to raise your normal risk per trade & your total overall exposure to above 80% of trading funds Orange intermediate conditions where normal risk per trade applies, but limit total exposure to a maximum of 50% Red use normal risk per trade but trading activity & exposure should be minimal & less than 25% of total funds except if you are short selling CATEGORIES Category 1 The highest probability of trade type These are the stocks with the best fundamentals, highest growth rates within the sectors that are most assured for forward growth The price will represent good value at entry The trend is strong as confirmed by the angle of the 150 dma The price pulls back to below 40% on the RSI, below the Bollinger Bands and close to the 150 dma These are the first choice of trades when times are uncertain Category 2 - Banks are good examples The fundamentals are good but the growth rates will not be as high as category 1 and the valuations may not be quite as appealing The trend is strong as above Buy the pullback as above Category 3 Range trades Buy the bottom of a trading range with a tight stop and take profit towards the top Category 4 Great fundamentals but out of favour Tick all the fundamental and valuation boxes The price may be in a sideways band or even a medium term downtrend Buy the reversal below the Bollinger Bands Category 5 Generally stocks in phase 1 which are showing signs of a breakout

6 Garry Davis Authorised Representative / Director 22 Dilkara Way City Beach WA 6015 Mobile: Ph / Fax (08) Web: Customer notice: The information contained in this communication is general information only. Any advice is general advice only. Neither your personal objectives, financial situation or needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice. Garry Davis (AR No:317590) is an authorised representative of Primary Securities Ltd (AFSL No ). Note to traders* The publishers of this article/information/promotion wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article/information/promotion.

MARKET TRADING ALERTS

Date: Saturday March 30 MARKET TRADING ALERTS Please note that this information is general advice only & is current only for this edition of the daily alerts. The information will be superseded by the