Trading Day Wednesday, 27th April 2011

S&P/ASX200 Index

Summary
After peaking sharply on the open, the market has settled slightly up after the almost week long Easter/ANZAC
break, at 4918 points.

The short term trend remains weak but positive on momentum, as it reverts to the medium term trend (note red
line on graph below). BHP weighs on the market (down 0.6%) whilst the banks are mixed, but generally up.

Chart 1. Daily candlestick with 15 day moving average (pink line) over 3 months.

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, 27th April 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
Go to the glossary at the end of the report for more
and exits based on a short term trading system.
information.

ASX100 Select

Name Code Pattern/Stance Position Notes

AMP Limited AMP Saucer bottom, trend BULLISH Up 0.7% but sideways for now
developing

ANZ Banking ANZ Sideways bullish AVOID Up 0.5%, meeting short term resistance

BHP-Billiton BHP Medium term uptrend, HOLD Down 0.6% struggling to find support
meeting resistance

Caltex CTX Medium term uptrend, BEARISH Bouncing off support at $14 - could reverse
exit triggered from here

Coca-Cola Amatil CCL Medium term uptrend BULLISH Up 0.4%, looks good

Cochlear COH Medium term uptrend BULLISH Up slightly, but hitting resistance again

Commonwealth Bank CBA Sideways bullish, meeting AVOID Breakout past resistance Up 0.6% - change
resistance to BULLISH

CSR CSR Medium term downtrend BEARISH Up almost 1%, but trend still intact

David Jones DJS Sideways bullish, trend BULLISH Up 0.4%, about to hit resistance/sell zone
developing around $4.85-4.90

Fairfax Media FXJ Medium term downtrend, AVOID/ Up over 1%, short term trend looks like
short term trend COVER switching to “Stage 2”

Harvey Norman HVN Medium term downtrend BEARISH No change - no good.

Macquarie Group MQG Medium term downtrend, AVOID Up 0.8%, looks like a bounce only so far
hitting support

National Aust. Bank NAB Sideways bullish, trend BULLISH Up 0.3%, but momentum decelerating.
developing Good time to take profits

Newcrest Mining NCM Medium term uptrend BULLISH Down slightly - gold is great in USD, but not
AUD!

Onesteel Ltd OST Medium term downtrend BEARISH Finding a bottom here. Time to cover
shorts?

Origin Energy ORG Sideways bullish AVOID Big spike on the LNG deal - if it can get
past $17.20, upgrade to BULLISH

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 Wednesday, 27th April 2011

ASX100 Select (continued)

Name Code Pattern/Stance Position Notes

QBE Insurance QBE Saucer bottom, trend BULLISH Up 1% and breakout past all resistance
developing levels. Looks good

Sonic Healthcare SHL Sideways bullish, uptrend BULLISH The Hedgehog is back! Up 1% as bullish
developing pennant pattern completes.

Suncorp Group SUN Medium term downtrend, AVOID/ Up 1%, but no reason to get excited.
hitting support COVER There’s that song again.

Tabcorp TAH Medium term uptrend, short BULLISH Up over 1% - but this is looking overbought,
term breakout expect a retracement.

Telstra TLS Sideways bearish AVOID Hmm, building a possible breakout pattern
here. Future Fund sellers gone.....

Wesfarmers WES Sideways bullish, trend BULLISH Down slightly, but within trend - hitting
developing resistance/sell zone at $34

Westpac Bank WBC Saucer bottom, trend BULLISH Up slightly, but momentum is flat. Profit
developing taking?

WorleyParsons WOR Medium term uptrend BULLISH Up 1%, but trend is flat overall. Stay the
course

ASX Small Ords

Name Code Pattern/Stance Position Notes

Aditya Birla ABY Medium term uptrend, HOLD Up 4.5% and reverting to trend.
pausing

Acrux ACR Medium term uptrend BULLISH Up 1.5% and accelerating

Billabong BBG Medium term downtrend, BEARISH Up almost 2% but still going down. Tighten
accelerating stop to $7.30

Bandanna Energy BND Medium term uptrend, BULLISH Down 2.7% - definite profit taking. Tighten
accelerating stop to $1.98

Beach Energy BPT Medium term uptrend, BULLISH Up 1.4% and reverting to trend
pausing

Car Sales.com CRZ Medium term uptrend, HOLD This looks very “slippy” - could turn into a
pausing short.

Data#3 Ltd DTL Medium term uptrend, HOLD Another slippery one - losing internal
meeting resistance strength. Watch for close below $14.45

Envestra ENV Medium term uptrend, BULLISH Up over 2%, could be overbought.
accelerating

Energy Resources ERA Medium term downtrend, COVER Still unloved - down almost 3%
finding support

Flexigroup FXL Medium term uptrend, BULLISH Flat - tighten stop to $2.14
accelerating

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 Wednesday, 27th April 2011

ASX Small Ords (continued)

Name Code Pattern/Stance Position Notes

Graincorp GNC Medium term uptrend, BULLISH Up 1.2% - nice little trend developing
breaking out

Horizon Oil HZN Sideways bullish, BULLISH Up 1% on breakout - but weak

breakout

Lynas Corp LYC Medium term uptrend, HOLD Down 6%, looks like another dip forming -
meeting resistance but will buyers step in again?

Medusa Mining MML Medium term uptrend, BULLISH Down 3%, breakout not confirmed, but still
accelerating bullish.

Monadelphous MND Medium term uptrend AVOID Up 1% - dip looks like completing, could
complete, sideways revert back to medium trend. Good Company

NRW Holdings NWH Medium term uptrend BULLISH Trading Halt - on contract announcement

Oceanagold OGC Sideways bearish AVOID Down 5% - busted through support - upgrade
to BEARISH

Pharmaxis PXS Sideways bullish, volatile AVOID Looks very toppy - resistance at $3.05 6
- meeting resistance days in a row. Time stop = get out

Regis Resources RRL Medium term uptrend, BULLISH Although down 2.7%, still within trend band.
accelerating Tighten stop to $2.36

Seek Ltd SEK Sideways bearish, AVOID Up 2.3% - breakout confirmed, but coming
possible breakout into sell zone at $7.10 to $7.20

Sigma Pharma. SIP Sideways bullish, BULLISH Up slightly, but still flat - time stop might
possible breakout apply soon.

Super Retail SUL Medium term uptrend, HOLD Slipping slightly (say that fast), about to go
meeting resistance negative momentum. Watch.

Virgin Blue VBA Medium term downtrend, COVER Down 1.5% but bullish divergence on
finding support indicators indicate a bottom soon.

Wotif.com WTF Medium term uptrend BULLISH Up almost 1%, but getting into sell zone
again at $5.80. Another Good Company

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 Wednesday, 27th April 2011

Calendar

Date Event/Company Notes

Wednesday, 27th April FOMC Meeting, Fed Reserve Probable volatility around this date

Wednesday, 27th April ABS CPI Quarterly inflation figures

Wednesday, 27th April MCC, ROC Production reports

Thursday, 28th April BPT, ILU, OSH, WHC Production reports

Friday, 29th April AWE, HZN, MMX, TAP Production reports

Friday, 29th April Macquarie (MQG) Earnings Release

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

Profit/Loss Ratio As opposed to Win/Loss (which can be below 50% yet still be profitable), the P/L ratio
determines how much money you make when you are right, and how little you lose when
your are wrong.

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