Trading Day Thursday, 19th May 2011

S&P/ASX200 Index

The S&P/ASX 200 is up almost 60 points or 1.3% at midday, clawing back some of the losses of the near month
long correction. Asian markets however are mixed on the back of the Japanese GDP shrinking, with the Nikkei
down slightly, the Hang Seng up 0.4% and Singapore up 0.5%. The AUD is up again to 1.0676 against the
USD, whilst gold is flirting with $1500 USD an ounce and WTI oil just over $100 USD per barrel.

The daily charts and intraday buying strongly suggest firm support at 4650/4700 points with a rebound in all
sectors. Even banks are up, shrugging off the Moody’s downgrade of yesterday. Individual stock analysis shows
evidence of continued support and a rebound off current low price levels.

Chart 1. Daily candlestick with 15 day moving average and 20 day CCI indicator

ABOUT DISCLAIMER
The Prince is a full The content of this document should not be taken as investment advice or construed as a
time trader with recommendation to buy or sell any security or financial instrument, or to participate in any
extensive experience particular trading or investment strategy. The views expressed are the opinion of the author
in equities and only. The author may have a position in any of the securities mentioned. Any action that you
derivatives trading take as a result of information or analysis is ultimately your responsibility. Consult someone
and portfolio who claims to have a qualification before making any investment decisions.
management.

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 Thursday, 19th May 2011

Daily Stock Scan

How to read What does “position” mean?

These watchlists are the results of end-of-week Bullish = looking to add/start long position
scans, using a medium term trading system to Bearish = looking to add/start short position
ascertain the strength, direction and momentum of Hold = maintained current position
trends.
Avoid = wait for direction/catalyst
This intra-day report will pinpoint possible entries
Shaded notes mean a change in position
and exits based on a short term trading system.
Go to the glossary at the end of the report for more
information.

Name Code Pattern/Stance Position Notes

AGL Energy AGK Sideways bullish AVOID Forming a flat base here - caution for now, watch for
breakouts

AMP Limited AMP Sideways bullish AVOID Gapped up 1.3% and technicals look good but not
confirmed for a short term rally

ANZ Banking ANZ Sideways bullish BULLISH Gapped up 1.3% and looks good for a short term
rally

ASX Limited ASX Sideways bullish BULLISH Up 1% but still weak - watch close

BHP-Billiton BHP Sideways bullish AVOID Another gapper - lots and lots of support at these
levels. Go long on a close above $45

Bluescope Steel BSL Medium term downtrend BEARISH Up slightly - maintain stops here

Boral BLD Sideways bearish AVOID Up over 2% but still in bearish pattern - wait

Caltex CTX Sideways bearish AVOID Up 1% - technicals support a bullish breakout on a

close above $14.55

Coca-Cola CCL Medium term uptrend BULLISH Down slightly but still respecting the 63 day moving
Amatil average (moving support line) Great company

Cochlear COH Medium term uptrend AVOID Now this is interesting - tried to breakout today but
pulled back with intraday selling. $80 level is crucial
support level. Volume is slowly tapering off - breakout
is imminent. Which way though?

Commonwealth CBA Sideways bearish AVOID Up 1% and stopped out - but weak.

CSL CSL Sideways volatile AVOID Up slightly and completing descending triangle from
$37 high to support at $34 - volume drying up too

CSR CSR Sideways bearish AVOID Up 1.7% and forming a strong base - breakout above
$3 would be very bullish

David Jones DJS Sideways bearish AVOID Nothing again - still no reason to get excited - strong
support at $4.45

Fairfax Media FXJ Sideways bearish AVOID Up another 3% on bottom picking - I don’t like these
sharp reversals, but there it is

Fortescue FMG Sideways bullish BULLISH Now this looks better - a reason to get excited - up
Metals 2.5% and ready to breakout. Small anticipatory
position to start wtih.

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 Thursday, 19th May 2011

Name Code Pattern/Stance Position Notes

Harvey Norman HVN Medium term downtrend BEARISH Down over 1% again - tighten stops to $2.62

JB Hi-Fi JBH Sideways bearish BEARISH Finding a small bottom - if closes at current prices,
exit short position. Appears resilient.

Macquarie MQG Sideways bearish AVOID Up another 1%- a close above $35 is bullish

Myer Holdings MYR Sideways bearish BEARISH Down slightly - but still very weak. Maintain short
position and stop at $3.05

National Aust. NAB Sideways bullish BULLISH Gapped up over 1% - complete shrug off of ratings
Bank downgrade - small position to start with here

Newcrest NCM Sideways bearish AVOID Now there’s a reason to get out - reversal on gold
Mining price resilience. Another day of this and go bullish

Onesteel Ltd OST Short term downtrend BEARISH Down 0.5% but this short is running out of puff. Take
some profits and be prepared to exit.

Oz Minerals OZL Sideways bullish BULLISH “looks like probable breakout forming” - BAZINGA!
Gapped up 4% - add to initial position

Qantas Airways QAN Sideways bearish AVOID Up slightly but nothing yet - looks bearish

QBE Insurance QBE Sideways bearish BEARISH Up slightly this morning. Tighten stop to $18.15 and
wait - probable rally occuring.

QR National QRN Sideways bearish AVOID Up 1% but still wavering over the $3.30 support level

Rio Tinto Ltd RIO Sideways bullish BULLISH “Could breakout on upside from here” - up 1.5% but
not a clear breakout yet - close above $81.70 will be.
Small position to start

Suncorp Group SUN Sideways bullish BULLISH Up 1% on breakout of short term ascending triangle,
probably small rally only. Small position nonetheless

Tabcorp TAH Sideways bullish AVOID Up 0.3% possibly staging comeback, but no reason
to get excited yet (that song again)

Telecom Corp. TEL Sideways bullish BULLISH Up slightly 0.3% and looking toppy to me - take
profits (I did yesterday)

Telstra TLS Sideways bullish BULLISH Up slightly too, likely to be a pullback as people take
some profits, but I can see legs on this one.

Wesfarmers WES Sideways bullish AVOID Up 1% and starting to look good, on the back of
commodity prices. Wait for confirmation of breakout

Westpac Bank WBC Sideways bullish AVOID Up 0.6% - weakest of the banks not much conviction
here. The market loves NAB and ANZ for now

Woodside WPL Sideways bearish AVOID Gapped up 2% on overnight oil prices - looking for a
long entry here soon if oil remains high

Woolworths WOW Sideways bullish BULLISH Up again - 0.3% on continued breakout - remember
strong resistance at $28 for WOW.

WorleyParsons WOR Sideways bullish BULLISH “but wait til close above $29 before getting excited” -
which it likely will today on a breakout. Small position
to start with just in case its a bull trap.

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 Thursday, 19th May 2011

Calendar

Date Event/Company Notes

Monday ABS Home loans and car sales

Monday DLX Earnings update

Wednesday WBC Consumer sentiment survey

Wednesday OZL AGM

Thursday JHX Earnings update

For more up to date information on upcoming events go here.

Glossary of Terms

Term Description

Bullish Biased towards an uptrend in the stock, either trend continuing or a new trend to develop

Bearish Biased towards a downtrend in a stock, or lack of potential for growth, or to add to a short

Long/Short The buying/selling of a security (or derivative thereof) with expectation it will rise/fall in value

Sideways Usually with a bullish/bearish bias, the stock is consolidating and not moving in a medium
term basis, but may move in between a channel of prices through short term trends.

Hold To maintain the position and examine risk management (e.g tighten stops)

Avoid To avoid a position entirely, but not to stop watching for future potential

Resistance An upper price level that a stock or index can trade to, but not exceed.

Support A lower price level that a stock or index can trade down to, but not drop below.

Momentum The rate of change or acceleration of prices, either upwards or downwards.

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