Please see the WASINTWiki Start Page for more information.
Many ASX stocks have undergone a significant downturn in the recent period so that the All Ordinaries Index is at a fifteen month low. The performance of all stocks and all sectors is not the same. This meeting compared the performance of various sectors and indices to identify those that are above or below the performance of the All Ordinaries Index. The downturn has impacted the WASINT portfolios and this impact will be discussed. It is also appropriate to review the WASINT stop sell criteria and their application to the portfolios. The meeting will conclude with a introduction to criteria which might be used to signal the end of the downturn and a possible upturn.
The initial period of the meeting considered information available from The Bull, a provider of Financial Services Information. The list of stocks with the highest proportion of stocks sold short were discussed. Criteria for maintaining a portfolio continued with discussions of Heikin-Ashi Candlestick Charts, Chandelier Stop Losses, and other stop loss criteria. Application of these criteria to the WASINT Portfolios was discussed.
The initial period of the September meeting considered information available from Morningstar and other Financial Service providers. This information was discussed in relation to recent moves in International Stock Markets. The discussion extended to the Australian Market and the WASINT portfolios. Principles for maintaining the WASINT Portfolios were considered in the later part of the meeting.
Both the Wasint Growth and the Momentum Portfolio of 10 stocks each have shown double digit annual gains since being created. Stocks in these portfolios provided examples to consider fine tuning stops for selling stocks. The WASINT momentum stock search based on the numerical difference between two moving averages was refined. Stocks from the output of the momentum search were discussed as replacements for those in the portfolios.
The United Kingdom “Brexit” referendum resulted in a majority vote to leave the European Union. The immediate and possible future impact upon indices and global economic factors were discussed. The WASINT Momentum Portfolio dropped 4% following the Brexit vote, but recovered for a gain of 4% to July 8 since being created at the June meeting.
The use of multiple moving averages (MMA), both visually and mathematically was considered as a means of considering both portfolio holdings and potential holdings. Rigorous application of growth parameters has been found to discriminate against more recent stock additions to the ASX, as time is required to develop and report the parameters is in the period 12 - 18 months. MMAs can act within much shorter time frame and suggest stocks for consideration. The WASINT Growth Portfolio continue to grow in value with a 5% increase in value since the May meeting.
Topics included discussion of the impact of the Budget on Investing and Superannuation. Rob Boulton advised us how he uses Daily Trading Ideas from Bell Direct with some cautionary tales. With our example portfolio being in place a little longer, the impact of various stops will be tested and discussed and additions were considered.
The performance of each category of noteworthy stocks identified at the March meeting were discussed in detail. Their short term performance was compared to their longer term performance in relation to their selection categories. Reference market conditions and indices were also discussed.
The meeting focused on identifying and charactising a limited selection of noteworthy stocks. Characteristics that considered for each stock included, longer term price movements and fundamental parameter variations. Recommendations from Internet commentators and from individual members were also considered.
Stock Markets in January 2016 had experienced much volatility and in general a decrease in average stock prices. Predictions for 2016 range from “very gloomy” to “mildly optimistic”. Factors contributing to these events formed the initial part of the discussion. The main discussion was on noteworthy stocks from a number of experienced public contributors. Some are the noteworthy stocks were “winners” from 2015, while others are proposed as promising for 2016.