Trading Day Wednesday, 18th May 2011

S&P/ASX200 Index

The S&P/ASX 200 is steady again at midday, slowing down amidst a correction that began in early April (down
over 7% or 250 points). Asian markets are all up, the Nikkei 0.6%, the Hang Seng 0.29% and Singapore
steady. The AUD is up slightly to 1.0609 against the USD, whilst gold is falling after news George Soros sold his
$800 million stake, trading at $1487 USD per ounce and WTI oil at $97.67 USD per barrel.

The lead from overseas markets - although mixed in the US was broadly down in Europe (all major indices
down by over 1%) has not translated into similar falls, just volatility.

The daily charts and intraday buying suggest a new support level at 4650 points is emerging. Individual stock
analysis shows evidence of continued support and a rebound off current low price levels. The telco stocks (TLS
and TEL) are rising sharply, whilst the banks have appeared to have found a bottom.

Chart 1. Daily candlestick with 63 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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 Wednesday, 18th 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 Pausing - close longs and wait this out - close below
$14.50 is bearish, above $14.80 is a breakout

AMP Limited AMP Sideways bearish AVOID Up slightly again and forming a stronger bottom, but
indicators still bearish. Wait

ANZ Banking ANZ Sideways bullish AVOID Forming a strong bottom here - with very small short
term trend in place. Breakout is very possible

ASX Limited ASX Sideways bearish BULLISH Up 1% on short term pennant formation breakout -
small position to start with here.

BHP-Billiton BHP Sideways bearish BEARISH Down slightly and still within downtrend channel, but
tighten stops to $44.50 - lots of support here

Bluescope Steel BSL Medium term downtrend BEARISH The monkeys are back - 2% uptick. Leave stop at
$1.60 and wait

Boral BLD Sideways bearish AVOID Down 1.5% in falling wedge pattern - no clear signal

Caltex CTX Sideways bearish AVOID Down 1% still within bearish trading range

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

Cochlear COH Medium term uptrend AVOID Up 0.6% and still forming a symmetrical/descending
triangle pattern - close below $80 is very bearish

Commonwealth CBA Sideways bearish BEARISH Is this a DCB or a rebound? Leave stop at $52

CSL CSL Sideways volatile AVOID Steady coming up to short term support at $34

CSR CSR Sideways bearish AVOID Down slightly and still moving sideways

David Jones DJS Sideways bearish AVOID Down 1.5% but no reason to get excited (there’s that
so again) - strong support at $4.45

Fairfax Media FXJ Medium term downtrend AVOID Big bounce today - up almost 4% - monkeys or
institutional buying (but I repeat myself)

Fortescue FMG Sideways bearish AVOID Up 1.5% and within a medium term falling wedge
Metals pattern - this is usually bullish once resolved

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 Wednesday, 18th May 2011

Name Code Pattern/Stance Position Notes

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

JB Hi-Fi JBH Sideways bearish BEARISH Down slightly, finding a small bottom for now. Good
buy at this price for longer term investors?

Macquarie MQG Sideways bearish AVOID Up 1% since I wrote this yesterday - tighten stops

Myer Holdings MYR Sideways bearish BEARISH Steady but still weak - tighten stop to $3.05

National Aust. NAB Sideways bullish AVOID Up slightly - rising wedge (or megaphone) pattern is
Bank bearish if resolved. Close below $26.55 is bearish

Newcrest NCM Short term downtrend BEARISH Yesterday close was bullish engulfing candle, but
Mining today is an inside day. No reason to exit short yet.

Onesteel Ltd OST Short term downtrend BEARISH Up 1%, but still very weak. Tighten stops again

Oz Minerals OZL Sideways bearish AVOID Up 4% yesterday and 0.7% so far today - looks like
probable breakout forming - close above $1.46 is
bullish - start a small position

Qantas Airways QAN Sideways bearish AVOID Descending triangle forming - looks bearish

QBE Insurance QBE Sideways bearish BEARISH Yesterday close was bullish - up slightly this morning.
Tighten stop to $18.15 and wait

QR National QRN Sideways bearish BEARISH Bugger - its respecting the support line at $3.35 - but
still weak. Tighten stops for probable small loss here

Rio Tinto Ltd RIO Sideways bearish AVOID Bottoming out like BHP - gravitating to the $80 point
of control price. Could breakout on upside from here

Suncorp Group SUN Sideways bearish AVOID Steady hitting very strong resistance at $8.45 - looks
like trading channel forming since March lows.
Breakout above is unlikely but bullish nonetheless

Tabcorp TAH Sideways bullish AVOID Up 0.4% possibly staging comeback, but no reason
to get excited yet (that song again)

Telecom Corp. TEL Sideways bullish BULLISH Up over 1.7% - slightly oversold but looking great.
Hope you all listened to me on this one!!!

Telstra TLS Sideways bullish BULLISH Bazinga! Close at $3 yesterday and broke up today -
that ITM call is up nicely thankyou. Do not be
surprised at a sustained rally to $3.30 or more

Wesfarmers WES Sideways bullish AVOID Up 0.6% but still sideways. Stay away for now

Westpac Bank WBC Sideways bullish AVOID Up slightly, looks like a bottom like other banks -
insto’s are coming back after correction?

Woodside WPL Sideways bearish AVOID Down slightly and looking more bearish in medium
term with oil price turnaround

Woolworths WOW Sideways bullish BULLISH Up again today after good day yesterday - small
bullish position to start with here - strong resistance
at $28 for WOW.

WorleyParsons WOR Sideways bullish AVOID Very very weak trend forming, but wait til close above
$29 before getting excited

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 Wednesday, 18th 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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