Unlike last week's action the move is broad based with a handful of defensives the modest outperformers.
I've also gone short Orica and Qbe. Given my methodology, there are lots of signals this morning as stocks follow the same broad pattern as the Xjo. My approach is to try to pick the ones that suit me best. Therefore I'm not necessarily going for the stocks that have confirmed a sell signal as in the Ozl example above, but instead I'm looking for situations where the move is just beginning. With the change in tone of the market there's a higher than normal chance that they'll come good.
With Orica, above, there's a strong chance it will test last week's low of 1946 and given the weakness we're seeing a quick move to 1800 could be on the cards. I'm short at 2022.Qbe is slightly different but what I like is that it seems to have completed a 3 wave rally from the May/early June fall and it's a rally where the 3rd wave has been pretty weak. So despite the gap I think there'll be good momentum for a move to a new low. In this case, I'm not expecting a large move but a high probability of success. Short at 1899.
12.22 My trade in Macquarie yesterday was a bit similar to Orica and initially it went against me. Fortunately I wasn't stopped out and today the stock has bounced off 3600 but is looking precarious. I punted some June 3500 puts at 18 which expire on Thursday because I think there's a good chance the stock fails to hold 3600 today in which case it could quickly blip down to 3500, 3550 giving me a nice day trade on the puts.
1.33 The market is having its second attempt at a rally today but it isn't gaining traction. According to FNArena, a good local research site, Macquarie is the last of the major brokers to have downgraded the banks. It might have been the last straw because they're not outperforming for once and since they're such a large part of the index it will be hard for the market to bounce much if they're under pressure all day. We're down 3% now and normally I wouldn't expect much more but today could be different.
Bought some Gpt at 46.5 to hedge part of my July 53 put position.
2.17 I'm beginning to think I've misread Orica. It has recovered well to be at 2058 only down 10 on the day. I cut just under a half at 2027 (v 2022) after the first little surge. I'll probably cut the rest later if it doesn't reverse. It's the price I pay for putting on positions without confirmation but I usually find it works for me.
2.53 Time is running out for the market to have a bounce and all we've done for the last couple of hours is go sideways. I've had another attempt at shorting Brambles. I've tried a couple of times recently and cut soon after so I hope that this is the one where the fall gathers momentum. Long July 625 puts at 64. 
3.32 Closed out a few Mqg June 3800 puts at 199 (v 157) and bought a few Qbe back at 1880 (v 1899) and a touch more Ori at 2071 (v 2022). Ori hit yesterday's high of 2083 and has come back so I may stay a little short tonight.
3.45 Sold out half of the Mqg June 3500 puts for 36 (v 18) as it blipped down to 3551. It's confirmed a daily break and gives me the luxury of holding on to the rest of these puts for a bit longer. Also sold out a few Cba June 3700 puts at 36 (v 40) - some of the extra ones I bought last week which are back from the dead - more luck than judgement.
4.15 The rally didn't eventuate as expected but neither did any particular broad weakness. However, Cba and Mqg finished towards their lows. I bought another chunk of Gpt at 47.5 to hedge most of my puts; it had earlier triggered a trailing stop with some volume at 49. I was also stopped out of Ori, buying the last couple on the match at 2072 (v 2022) as some gung ho operator spent most of the day panicking over his buy order despite a market down 3%. My trailing stop was set off with a few sales at 2085.
Quite a good day altogether, with Tcl, my only long, holding quite well at down 6 while Cba and Mqg were both pretty weak. Still short some of each along with Bxb and Qbe.
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