It was a quiet day here for NRW although (seems to me) after starting slow the pace picked up dramatically towards the end of the day closing 1c higher st $2.03 with the final volume for the day being 2,122,092 on the ASX - highest in the last three days.
In the absence of other news here’s a link some may find interesting.
It’s a summary of the annual trading cycle -as it relates to cobalt- which I found on another thread.
While the only physical thing currently connecting NRW to cobalt is that we share director, Peter Johnston, with junior cobalt explorer JRV, the cycle may apply to more companies than those restricted to this mineral .
If so it may be a busy few months ahead :
AN ANNUAL TRADING CYCLE
According to Nick, French, director Cobalt 27
“January through April: The early months of the year are typically the busiest. I always look at it as New Year enthusiasm. You’d be surprised how much is influenced by human nature (optimism, wishful thinking and the like).
May through August: There is typically a slow down as we head to Summer. The old stock market adage of "sell in May and go away" applies here. Traders who have been long and enjoying the steady rising trend over last few months, often look to lock in some or all of that profit.
However, the slow down is also a result of many manufacturing plants traditionally closing for a month during Summer. This means routine cobalt purchasing will stop a month or so before that, in order to run down unnecessary stock in pipeline.
Of course, you will also find the more experienced traders stepping back from the market and allowing the Summer lull to create opportunities to replace stocks which they sold out at higher prices.
September: Think of this as the "What on Earth just happened?" month. This is the point at which the market starts powering back up. It’s normally kick-started by cobalt consumers looking to refill the supply pipeline that was depleted prior to the Summer shut down for manufacturing plants.
October through to early December: Often referred to as the "mating season", this is when the big beasts on the consuming side (e.g. big European chemical plants) and the supply side (e.g. the major producers) hunker down to negotiate long term contracts.
This period usually brings with it a re-focusing on the forecast demand and supply balance and, with the current bullish fundamentals, a tightening in the market as major deals are hammered out.
Mid-December: The dance is done and the traders are ready for Christmas and their vacation time… and then around we go again!”
http://www.cobalt27.com/blog/index.php?content_id=171
Cheers
(20min delay)
