Anglo American & Alsi Update

Yesterday was eventful.

We had the US unemployent come out and it was pretty bad. Worse than expected. So our market and many others went for a bath...

We went long in the morning for 150 odd points which was amazing and our long position in Anglo American hit target and peaked out at 15100. We took profit at 14921c which is a round figure profit of R13 per share using single stock future contracts x 3. This means we had 3 contracts x 100 shares per contract. Brokerage is about R600 give or take depending on who you are trading with...

So our profit there is R13 x 300 less brokerage of R600 which gives us a total nett of R3900 - R600 = R3300. Not too shabby for a 2 day trade.

The ALSI gave up over 400 pts yesterday using the day trader trend indicator I was able to take the long, then a short as well as another long in the afternoon. The last long was at 16h25 at 16430 and out at 16685 for just over 200 pts. The volatility in the market can really benefit one if you are able to ascertain the trend intraday but also to gather swing points using various trading techniques.

We went long this morning with the resistance being 16454 end of day as well as 16450 intraday. As the market opened this moved to 16430 which is our top resistance. I closed at 16411. We opened at 16368 for 40 odd pts. Which pays for lunch.

Now the market is range bound stuck between 16420 and 16270 and could be traded within this range perhaps one more time. It does depend on the FTSE open. We may see a break of 16420/430 to the upside however the general end of day trend is bearish....

There is the opportunity that the market will swing depending on the FTSE open. This will signal a chase to close the gap at open. that gives us a target of 16470, followed by 16531, 16651/685 to the upside.

Watch DRD again and ANG as safe haven investors take refuge in the gold shares again...

Keep an eye on Grindrod as at 1100c it is quite oversold. 976c is ultimate support for the share with the next few weeks going forward we could see it head there to test it. However the short term over the next few days we could see a bounce with support at 1100c. A stop loss at 1100c would be more than sufficient for a reward of 106c per share to a max of 1311c from its current level of 1126c.

We broke 16450 and traded again going long keeping a ratchet stop loss at our resistance level now support at 16531.

Good trading.


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