Bank Underperformance. Wed June 24

The US markets were pretty much unchanged and our session opened with some small gains but the general weakness from yesterday has reasserted itself. The banks are faring worse than most stocks as the trend continues.
It's 11.04 am, just over an hour into the day's trading, and the market is just off its lows, down 14 points. I took off the last of the Mqg June 3800 puts at 269 (v 157) and also sold out the balance of the June 3500 puts, bought yesterday at 18, for 50. In Cba, I've sold out the rest of the June 3700 puts from last week at 44 (v 40).

11.11 I've bought some June 2250 puts in Nab at 103. They expire tomorrow - it's the equivalent of selling stock at 2147. I stopped out of my puts a couple of days back but the stock reversed again yesterday. I did actually make a profitable day trade on the short side yesterday in Nab but didn't write about it because it was inspired by the urge to get back some money that the stock "owed" me. This is a foolish though not an uncommon motivation. Anyway, I noticed that the stock was failing to hold yesterday's intraday support levels so I went short and now it has made a new low.

I've already sold a few of the puts at 118 but I'm hoping this runs all day. I'll probably look to intraday charts for a point to take it off because I've got in late and so don't fancy it as an overnight position.

11.49 The market is steadying so out of the rest of the Nab puts for 120.

2.55 The market has now poked its nose into positive territory as other regional markets are stronger. US overnight futures have, in a minor way, reversed course to be up. I'm debating whether to sell Transurban. There's no debate really, I was after a quick move as usual and could have sold out a few days ago. The stock has fallen through support because it's ex dividend but the effect is the same for me.

3.02 Out of Tcl for 395, or 406 when adjusted for the dividend, versus a buy price of 415.

3.26 Bought back my hedge in Ozl for square as it seems well supported and looks promising on the 60 minute chart.

4.04 The steady climb from late morning lows has continued and I'm pleased that I got out of short positions at a good time of day. I haven't got much left now; some calls in Ozl, and moderate shorts in Bxb and Qbe. Gpt has been strong today, up 3 at 50, and a run up to 60 or so would allow me to make some money on my stock hedge.....but I can't really see it happening.

4.15 The Xjo index closed up 10 although the Spi contract which continues to trade until 4.30 pm has started to slip post the match out.