In reference to Fergies comment about the Herald Sun Day...

In reference to Fergies comment about the Herald Sun Day Traders; Here's the article;

DAY TRADER
Herald Sun (Melbourne, Australia) - April 30, 2008
Author: DARRYL MORLEY
OUR market last week continued to validate my belief the downtrend has reversed.

Although Thursday's price action was down, it formed a divergence when the S&P/ASX 200 traded below the previous day's low and the Futures SPI contract did not, indicating a move up on Monday.

The next target for the All Ords is 6050 with a likely pause around 5850 -- the spike highs formed in early and late February this year.

If we get some consolidation around 6050, we can expect any move up from there to test the All Ords record high of 6873.

Last week was a good week for our portfolio. All three stocks bought the previous week moved up strongly and their stops have been adjusted up to lock in profit.

I went on a bit of a buying spree on April 22. Several stocks I had been watching gave me buy signals on April 21.

Cape Lambert Iron Ore (CFE) had been trading sideways in a very narrow range for over a week at the level of the spike high formed in early 2006 just below the record high in mid-2007.

When a stock moves sideways like this at previous highs, there is a high probability it will move above the old high. April 24 saw what appears to be the beginning of this move.

We bought 8000 at 68 for a total of $5460. The initial stop is 66 and the initial target is 95.

Linc Energy (LNC) recently reached a new high and consolidated while the market made its reversal. This low-range, low-volume trading was the buy signal.

We bought 5000 at $1.18 for a total of $5920. Initial stop was $1.10, since raised to $1.29 with a target of $1.60.

Reward Minerals (RWD) also broke to a new high recently and after a pull-back formed a pivot-point reversal and had a couple of narrow range trading days, triggering the buy.

We bought 4000 at $1.65 for a total of $6620. Initial stop was $1.59, since raised to $1.70.

CI Resources (CII) broke above a narrow trading range just below the recent spike high of 45, which was also the level of a significant price spike in 2002.

We bought 10,000 at 40 each for a total of $4020. The initial stop is 36.5 with a target around 80 then $1.20.

We also bought 10,000 Ausquest (AQD) at 38 for a total of $3820 on a similar set-up and signal to CII. The stop is 35 and the target is 55.

Thanks to the observant readers I have adjusted the accounting error in last week's portfolio position.

Portfolio Position

Stock Shares Price Stop Close

AQA 500 $12.31 $13.00 $15.50

IGR 8000 61.5 60 68.5

NHC 2000 $3.19 $3.47 $3.99

CFE 8000 68 66 70

LNC 5000 $1.18 $1.10 $1.475

CII 10,000 40 36.5 53

RWD 4000 $1.65 $1.59 $1.80

AQD 10,000 38 35 40

All figures are at close of trade last Friday.

Cash: $115,581.

Shares: $50,685.

Total: $166,266.

(Initial stake in July 2006 of $50,000.)

Email: [email protected]

Potential investors should seek professional advice before buying shares to determine whether such action is appropriate for their investment objectives and financial situation.