It's 1 pm and the Xjo index is up 9 points having rallied from early softness and then stalled. I took the opportunity to lighten the load by selling out some Aio at 148 (v 144), some Axa at 407 (v 398), the balance of Gbg at 90.5 (v 85), the last of the Telstra at 360 (v 346) and the Tol at 667 (v 647).
I've added two new long positions in Centennial coal and Platinum Australia.
Cey, long at 289.5, is a simple resumption of trend after a consolidation.
Off the top of my head, it could either stall here at a minor new high forcing me to stop out or power on. The weekly implies that the stock will be strong but in the short term there is the familiar pattern of a surge followed by a minor new high which can mean that the short term move is over - so it's not plain sailing yet.
Pla is a clearer looking chart. It looks like we're moving in to the 3rd wave of a rally which usually sees the stock accelerating. The last 7 bars have been in a particularly tight range but still with a discernible pattern of a bullish pennant style correction of the earlier rally.
2.05 The market is having another run at the day's highs. I bought a few more Pla as it continues to strengthen. Long at an average price of 97.
The coal stocks are running today. I've already bought Cey and have added some Straits Resources at 213. Here's the daily.
It's not as clear as some of the stocks I'm in but I'm impressed by the 7% bounce on good volume after making a higher low. In the context of the whole sector running I'm comfortable with the trade.
2.30 Stopped out of Suncorp at 713 as it stalls.
4.05 Ahead of the closing price auction at 4.10 pm, the top 200 index is up 30 points. I'm long Aio, Axa, Cey, Pla and Srl. They're mostly looking strong into the close although Srl has just reversed in the last 20 minutes. I had sold some stock at 215 (v 213) to cover costs.
Tol is the one that got away today as it has continued to rally having reached 690 earlier.
Axa has been the best performer, up about 4%.
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