Stocks: 30th May 2016

Disclaimer - Read this first!

This is not a signal service. While endeavoring to post signals before time occasionally I will only be able to post signals a day or two late

I am not a financial adviser. These are paper trades. I am not suggesting you follow these signals. If you take any action based on my blog you do so at your own risk.

WETT System

System Status: ON (As at 30 May 2016) Take new positions. Existing stops stay as they were - new stops are approx 60% of buy price.

Opening Stock Trades

• Buy ALL initial stop 7.61
• Buy AJA initial stop 4.17
• Buy IFN initial stop 0.63
• Buy MNS initial stop 0.39
• Buy NXT initial stop 2.04
• Buy ORE initial stop 2.61
• Buy SIP initial stop 0.73
• Buy SDF initial stop 1.17
• Buy SYR initial stop 3.33
• Buy TPM initial stop 7.41
• Buy TWE initial stop 6.25
• Buy VOC initial stop 5.64

Closing Stock Trades

Nil

Weekly Momentum System

System Status: ON - Fill Yer Boots.

Opening Stock Trades

This is my version of one shown in 'Stocks on the Move' written by Andreas F Clenow. If you are keen to really come to grips with it buy the book and work through the examples shown.

A Brief explanation - when this system turns on you fill your book. Each month you re-weight your book. Each week end you see if anything needs to be closed - either the 2 day volatility has spiked over 7% on the chart OR the stock is below the 100 day EMA. If you do close anything during the month while the system is on you will replace it at the end of the month during the re-weighting process. The idea is to take 20 positions of the highest momentum stocks on the ASX 300. Here is my starting filter and result..

The result is ordered by momentum (high to low) and plugged into the spreadsheet unless the 2 day vol on the chart has spiked over 7% in the last 45 trading days. the buy value is calculated by combining the momentum and volatility to work out what percentage of the book should be bought. We want the highest momentum stocks but the position is weighted by volatility too so high momentum is reduced by high volatility. The results are rounded to the nearest $100 and the last stock rounds down if I'm trying to spend more than I have. Once I have a position I will leave it unless the size needs to change by at least $2000 OR it is stopped out. Here are Monday's buys...

When the system turns off we simply stop buying anything new. The 100 day EMA and Volatility will stops close down whatever positions we have otherwise we just leave them be.

Closing Stock Trades

Nil

Chart(s) of the day

Nil

Further Information

Disclosure - Personal Interests: ALU and MQA

All Stock charts courtesy of www.IncredibleCharts.com

** WETT Trading style is Similar to the methodology described in 'The Weekend Trend Trader' by Nick Radge, Buy his book if you wish to discover how I am generating these signals (note: I do not receive any benefit from promoting Nick Radge, Dave Landry, Andreas F Clenow, Incredible Charts or anything else.)