Table of Contents
Warren Buffett is quoted saying, “Rule No. 1 is: Never lose money… Rule No. 2 is: Never forget Rule No. 1.” However, I argue that this guidance can be detrimental to the average investor.
Why? The reality is, every investor will encounter losses. Clinging to the notion of “never losing money” could lead to holding onto poor investments far too long in the vain hope of recovery. This advice assumes an unrealistic ability to consistently select stocks that outperform the market.
Instead of adhering blindly to Buffett’s rules, consider a more pragmatic approach: “Rule No. 1 is: Never hold onto a losing investment past a certain threshold (X). Rule No. 2 is: Never forget Rule No. 1.” In this context, “X” could refer to a fixed percentage of loss or specific technical indicators.
Adopting this framework would have allowed investors to exit numerous stocks on today’s downtrends scan well before they declined significantly.
This overview leads into the ChartWatch Daily ASX Scans, a series dedicated to tracking trends in the ASX through a technical analysis methodology aimed at highlighting the strongest uptrends and downtrends.
Investors who prefer to take positions in strong uptrends and avoid or short-sell in downtrends can use these lists accordingly. The specifics of how you utilise this information depend on your individual strategy. It’s noteworthy that many stocks may appear repeatedly, as long as they meet my criteria. However, there will be no notifications for stocks that drop off the lists, necessitating your research to monitor trend changes.
Uptrends Scan List
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Adairs | ADH | $2.71 | +23.2% | +40.4% |
| Almonty Industries | AII | $2.80 | +16.7% | +418.5% |
| AMA Group | AMA | $0.083 | +31.7% | +93.4% |
| Aurelia Metals | AMI | $0.315 | +31.3% | +70.3% |
| Aspen Group | APZ | $3.24 | +8.4% | +88.4% |
| BetaShares Global Defence ETF | ARMR | $22.02 | +7.9% | 0% |
| AUB Group | AUB | $34.65 | +12.6% | +9.9% |
| Barton Gold | BGD | $0.710 | +63.2% | +121.9% |
| Brightstar Resources | BTR | $0.690 | +25.5% | +53.3% |
| Charter Hall Group | CHC | $18.30 | +13.9% | +53.0% |
| Computershare | CPU | $41.72 | +12.1% | +55.2% |
| Elsight | ELS | $0.570 | +54.1% | +46.2% |
| Energy One | EOL | $13.80 | +24.9% | +226.3% |
| Firetrail Aust Small Companies Fund ETF | FSML | $1.805 | +7.8% | 0% |
| Graincorp | GNC | $7.87 | +19.2% | +0.1% |
| Genusplus Group | GNP | $3.20 | +21.7% | +68.4% |
| GPT Group | GPT | $4.79 | +6.7% | +13.8% |
| Inghams Group | ING | $3.87 | +18.0% | -0.3% |
| Medallion Metals | MM8 | $0.275 | +5.8% | +391.1% |
| McMillan Shakespeare | MMS | $16.33 | +12.6% | -8.4% |
| Metcash | MTS | $3.35 | +6.0% | -12.3% |
| Ophir High Conviction Fund | OPH | $3.11 | +11.1% | +21.5% |
| Pantoro | PNR | $3.21 | +20.7% | +136.0% |
| Regis Healthcare | REG | $7.73 | +15.9% | +89.5% |
| Resmed Inc | RMD | $38.99 | +16.0% | +18.9% |
| Renascor Resources | RNU | $0.079 | +43.6% | -21.0% |
| Sims | SGM | $15.69 | +14.8% | +46.2% |
| Supply Network | SNL | $41.00 | +8.5% | +97.1% |
| SRG Global | SRG | $1.445 | +15.6% | +67.1% |
| Servcorp | SRV | $5.45 | +9.0% | +32.9% |
| Southern Cross Media Group | SXL | $0.745 | +23.1% | -12.4% |
| Tabcorp | TAH | $0.720 | +30.9% | +5.1% |
| Titomic | TTT | $0.310 | +51.2% | +269.0% |
| Ventia Services Group | VNT | $4.65 | +12.0% | +31.0% |
| Warriedar Resources | WA8 | $0.110 | +64.2% | +103.7% |
| Wagners Holding Company | WGN | $1.990 | +18.5% | +139.8% |
| WCM Global Growth | WQG | $1.780 | +12.0% | +20.3% |
Featured Stocks from Uptrends Scan
The stocks demonstrating robust demand include:
- Computershare (ASX: CPU)
- Graincorp (ASX: GNC)
- Inghams Group (ASX: ING)
- Medallion Metals (ASX: MM8)
- Sims (ASX: SGM)
- SRG Global (ASX: SRG)
- Titomic (ASX: TTT)
- Wagners Holding Company (ASX: WGN)
Downtrends Scan List
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Adriatic Metals | ADT | $3.64 | -17.5% | -17.8% |
| Austin Engineering | ANG | $0.380 | -8.4% | -25.5% |
| Avita Medical | AVH | $2.01 | -27.7% | -27.7% |
| Coronado Global Resources | CRN | $0.185 | -27.5% | -83.8% |
| Domino’s Pizza Enterprises | DMP | $25.20 | -6.7% | -33.8% |
| Kogan.Com | KGN | $4.53 | +2.5% | -5.2% |
| Propel Funeral Partners | PFP | $4.78 | -8.6% | -13.6% |
| Sovereign Metals | SVM | $0.620 | -10.8% | +15.9% |
Featured Stocks from Downtrends Scan
Stocks with notable supply pressures include:
- Adriatic Metals (ASX: ADT)
- Avita Medical (ASX: AVH)
- Coronado Global Resources (ASX: CRN)
- Domino’s Pizza Enterprises (ASX: DMP)
- Kogan.Com (ASX: KGN)
- Propel Funeral Partners (ASX: PFP)
- Sovereign Metals (ASX: SVM)
Key Takeaways
- The future remains uncertain; trends may change rapidly.
- These lists are curated by myself and stocks may alternate between lists as they meet my criteria.
- This is not a buy/sell recommendation service but rather a tool for understanding technical analysis.
- Always perform your own research when trading.
By applying informed strategies and remaining mindful of losses, investors can improve their chances in the fluctuating markets.
