April Market Comment
An interesting week just gone. Fear replaced greed for a time there. Was
it one of opportunity or loss for you ? I believe it all depends on how
you manage your risk. As I happened to outline in the recent advanced
charting class, fortuitously, on Wednesday 5th (April), I was a net buyer
of stocks on this down day, and have since sold out of several positions
Friday 7th. (VNA, Effnet Sausage and Aerodata)
Was I certain the tech stocks would recover so quickly ? No. Was I
nervous at the time ? Yes. But the trading plan was in place to exit my
buys, if the price had continued down the rest of the week. If you study
carefully the charts this week, many stocks lowed at key Fibonacci .618
levels, which helped add some confidence to the buying strategy. Achieving
a set return requires the taking of some risk. There is just no way around
this. A plan to manage the risk within acceptable limits is essential.
An interesting comment from my newsagent proprietor where I buy the paper
each morning in Carlton whilst walking to work; all year he has been
waiting for a Nasdaq correction so he could buy our stocks at better
prices. Come this week and he was too nervous to buy. Sometimes markets
are just pure psychology.
A couple of Gann hints now for the next quarter from April;you would now be
counting 30, 60, 90 degrees up to 180 from Wednesday, as regards tech
stocks for future trading opportunities. Stay close to the market on these
days. Watch especially any stocks that made a big change of trend last
week. May 4th/5th should prove especially interesting, so too May 28th,
anniversary of last years All Ords low. Stay tuned.

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