Trading Day Tuesday, 10th May 2011

S&P/ASX200 Index

The S&P/ASX 200 is down slightly at midday, with strong intra-day selling pressure. Asian markets are mixed,
with the Nikkei down a little but Hang Seng and Singapore up. The AUD is steady at 1.07 against the USD and
86.5 against the Yen (which is highly correlated with the ASX200)

Short term price action as illustrated last week showed a decelerating correction - but the short term still
remains bearish until a close above 4800 points is evident. Current conditions remain a buy zone for investors
who believe in a strong Australian economy and for the standard “9% a year” rising stock market paradigm to
continue.

The major trend and support line is 4700 points - a close back to below this area would be a clear sell/short
zone.

Chart 1. Daily candlestick with 260 day moving average and 11 day ADX (red is negative directional bias)

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.

MacroBusiness Trading Day The Prince Page 1

 Tuesday, 10th 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 BULLISH Still pausing on rebound rally - watch for breakout
above $14.80 to continue

AMP Limited AMP Sideways bullish BULLISH another reversal - down 1% but still respecting trend
channel - a close below $5.20 is very bearish

ANZ Banking ANZ Sideways bullish AVOID Down 0.75% but finding weak support - close below
$23.20 is supportive of short term downtrend

ASX Limited ASX Rounding top BEARISH Coming up to support at $30 - still bearish

BHP-Billiton BHP Sideways bearish AVOID Up slightly but no clear signal that this is end of
correction - close below $44.50 is bearish

Bluescope Steel BSL Medium term downtrend BEARISH “but not yet over” - down almost 2% - stay the course

Boral BLD Sideways bearish BEARISH H & S did fail - down 2.5%

Caltex CTX Sideways bearish AVOID Down slightly - as I said, wait for confirmation of new
short term uptrend - this aint it yet

Coca-Cola CCL Medium term uptrend BULLISH Down 0.5% but still in medium term uptrend channel
Amatil - not for short term trading.

Cochlear COH Medium term uptrend BULLISH Down slightly on AUD strength. No trading here
either, but excellent prices for investors.

Commonwealth CBA Sideways bullish AVOID Pausing - still waiting for earnings report

CSL CSL Sideways volatile AVOID Up slightly, but wedge pattern forming - short term
support at $34

CSR CSR Medium term downtrend BEARISH Down slightly - possible bottom here, tighten stops

David Jones DJS Sideways bearish AVOID Down 1% still rangebound. No action yet.

Fairfax Media FXJ Medium term downtrend BEARISH “seems oversold” - up 1.4%, but still very weak -
tighten stops nonetheless

MacroBusiness Trading Day The Prince Page 2

 Tuesday, 10th May 2011

Name Code Pattern/Stance Position Notes

Fortescue FMG Sideways bullish, BULLISH Up 1.5% - looks good from here, small position to
Metals ascending triangle start with. Target still $7

Harvey Norman HVN Medium term downtrend BEARISH Up 1% in weak sideways channel - tighten stop to
$2.71 and watch closely for breakout

JB Hi-Fi JBH Sideways bullish AVOID New trend channel forming? Volatile but could rally
up to $21 or so

Macquarie MQG Medium term downtrend AVOID Up slightly today, symmetrical triangle forming - S &
Group R at 36 and 34.50 - go long/short on breakout

Myer Holdings MYR Sideways bearish AVOID Grinding out a bottom above $3 - nothing going yet

National Aust. NAB Medium term uptrend BULLISH Spinning top yesterday, and down slightly today -
Bank great place for contrarian short here!!! Take profits

Newcrest NCM Medium term uptrend - BULLISH Long term trend intact, but meeting resistance.
Mining near resistance Finding short term bottom at $39 - close below is
bearish.

Onesteel Ltd OST Sideways bearish BEARISH Down 4% on profit downgrade - is this all priced in?
Still has another 25% to fall to March 2009 low...

Oz Minerals OZL Sideways bearish AVOID Up 0.7% - weekly close below $1.40 equals new
downtrend

Qantas Airways QAN Sideways bearish AVOID Pausing on back on engineers strike

QBE Insurance QBE Sideways bullish AVOID Another pauser - still going nowhere, no action

QR National QRN Sideways bullish AVOID Down 0.3% and forming flat base at end of trend -
$3.58/$3.35 S&R

Rio Tinto Ltd RIO Sideways bullish HOLD Up slightly, but nothing to get excited about yet

Suncorp Group SUN Sideways bearish BEARISH More pausing - medium term falling triangle pattern is
still bearish - more QLD property trouble ahead?

Tabcorp TAH Medium term uptrend BULLISH Up 0.4 - could be overbought, but looks ok so far

Telecom Corp. TEL Sideways bullish BULLISH Up nearly 1% - telcos on the march....

Telstra TLS Sideways bullish BULLISH Up 1% after yesterdays profit taking - but could stall
here - remember resistance at $3 is strong

Wesfarmers WES Sideways bullish BULLISH Down slightly. Breakout above $34 is very bullish

Westpac Bank WBC Sideways bullish AVOID Strong intraday selling yesterday is repeated today -
this is looking like a DCB. Close below $24 is VERY
bearish.

Woodside WPL Sideways bullish AVOID Up slightly, but nothing to get excited about yet

Woolworths WOW Sideways bearish AVOID Hit resistance on cue and down again - the pattern is
still bearish for WOW.

WorleyParsons WOR Sideways bullish AVOID Weak 3 day uptrend continues - but still looks bearish
to me. Not many buyers about yet.

MacroBusiness Trading Day The Prince Page 3

 Tuesday, 10th May 2011

Calendar

Date Event/Company Notes

Tuesday, 10th May Commonwealth Bank (CBA) March QTR Trading update

Tuesday, 10th May ABS/NAB Trade balance, NAB Business Confidence

Tuesday, 10th May Treasury Budget Release

Wednesday, 11th May CSR Earnings

Thursday, 10th May ABS Unemployment rate

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.

SUBSCRIBE TO REPORT Via RSS Feed: Trading Day at MacroBusiness

MacroBusiness Trading Day The Prince Page 4