september week 2, page-33

Hi LuckyV,

We are taking a long weekend from tomorrow so I probably won't get back to you with actual charts until next week.

However my quick impressions are: -

LEI - I'll wait for the stochastics to look healthier, right now they are giving a clear sell signal. My ideal entry would be around 30 - 30.5 but it depends on how things play out.

NWS - Again I don't like the sell signal on the stochastic. We clearly missed our run on this one and I am finally learning to be patient.

QBE - David has been a long time QBE faithful but he's concerned about its exposure to the US and takes the view that unless US interest rates go up it is going nowhere - apparently it has $20 billion to invest. So for us it is going into the very short term trade basket. My original plan was to wait for a break out above 17.50 then enter on a backtest but again I would want the stochastics to look healthier.


Kookeboy,

I would be careful shorting NCM. It is showing a very clear bullish flag pattern. Having said that we have been caught with a short position for the last couple of weeks and I am learning lots and lots about option strategies while David rolls us out of trouble.

cheers

Lindfield


Off to pack for Thredbo.