Wednesday, 19 September 2012
With the ASX 200 pushing through the weekly chart down trend line, I have been looking to buy strong Aussie stocks. Yes there is still nearby overhead resistance for the ASX 200, but the trend line break means that the balance of probabilities is shifting, and for me that means it is time to increase exposure to Aussie equities in both my trading and investment accounts, albeit from a very low base. As a trader there is no entry I like better than buying new all time highs, especially when they follow a long period of consolidation. Of course many traders would be horrified at the thought of buying new highs. Each to their own. SFR is a classic new highs set up, with the break following a two year inverse head and shoulders continuation pattern (not labelled). There are many ways to play it. Either enter on the break out, or wait for a retracement or retest. Also many ways to allocate and then manage your risk capital. Many ways to set and/or trail a stop too. What's your plan?