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As you know, it’s never easy shopping for presents, but it’s the thought that counts and I have put a lot of thought into finding some Christmas rally prospects for you.
As stated in recent articles, I am not overly excited about this current rally - not because I am not on board but because I believe it could turn at any time. But I know that some of you like a flutter, even if it is just playing with ‘pocket money’ to keep your hand in, so I have identified a few prospects for your consideration. Please note that the usual disciplines should apply - even to flutters - as it is always important to maintain your skill-level.
I have always been cautious about so-called ‘Santa Claus’ rallies, especially in Australia where the ‘good cheer’ lasts longer than it does on the northern hemisphere markets. So don’t forget to wake up and check the markets after your big turkey feast!
Having said all that, here are three stocks that I think offer promise: BLD, MND and PNA.
Firstly, Boral:
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Boral looks good on the daily and weekly charts, with classic Elliott setups and sound oscillators appearing on both. The big question is timing. I think you could make money on Boral as a short-term runner (of maybe 20-25%, which would be rather nice) but then we could see a pullback before a rally next year.
Now to MND:
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I think MND also has sound prospects in the coming year. It has been range trading for almost a year and is breaking out. I would wait for a retreat for an opportunity to buy in and take a several-month view, perhaps even longer.
And finally PNA:
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The daily chart above suggests short-term gains but the monthly outlook is also promising:
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I recommend you do your own research!
For those of you who do not like these, I will try to do better in the New Year.
There is just one more edition of Trading Tutors this year and I will review the markets of 2012 and consider what lessons we can take into 2013.
Enjoy the ride
Tom Scollon |