On the runway. Tue Sep 22

Virgin Blue looks ready to take off (sorry) as it has broken the 40 level which had held it for a few weeks with 43 up ahead. I'm long at 40.6 although I'm trying to buy some more at 41 which would take the average up. The index, at 11.34 am, is virtually unchanged having clawed back mild early losses as the overnight US lead was slightly negative. I think we were building in more of a fall in the US though so I expect to see some more strength as the day rolls on.

I've stopped out of Bsl at 310 (v 313) after it traded below yesterday's low of 310 and has been as low as 306. Gpt held support at 66 although it hasn't moved far while Mig opened weaker but is close to square now.

Two of the stocks I've been watching, which I think have the capacity to move explosively, are Linc Energy and Lynas corporation. They've both made buy signals and I've bought them both which means I have 5 positions instead of 3. I'm scratching my head trying to work out which ones to get rid of. I haven't dramatically overspent because although I'm looking at stocks up to a 500 price level, my longs are all under 200 and I tend to buy slightly fewer than my maximum dollar amount for these lower priced stocks because they are more volatile.

Lnc has made a new high and although there's always the possibility that it's one of those marginal new highs followed by a reversal, it certainly looks more like a stock in the early phase of an explosive move. Long at 177.

I've written previously about the Lyc chart suggesting that the recent overlapping highs and lows in what is a bullish chart might indicate a larger move unfolding. The stock has been above the recent high of 84 and I'm long at a fraction below that. 1.34 I bought the balance of Vba at 41 earlier to take my average entry price to 40.7. The stock has been retracing and is 40.5 now. My other purchases are going well with Lnc at 183 and Lyc at 86. Although I'm mildly bullish for the rest of the day the market has actually gone nowhere since my last post and is still down 4.

2.50 Still flat as a tack. Gpt has dropped below 66 so it's going part of the way to resolving my problem of too many stocks. I've sold half out at 66 and I'm on the offer there for the rest.

3.15 Stopped out of Gpt at 66 (v 64).

4.09 In general, it was a dreary day with the market never managing to perk up as I'd anticipated. You could be forgiven for getting bearish after the last couple of days but there are still no real signs of a top, just a few inside days and quite a few individual stocks are making buy signals even if it's just the resumption of a trend.

In fact, too many buy signals has been a slight issue for me today because although I stopped out of Bsl and Gpt, I bought Lnc, Lyc and Vba to be over my limit. I then added to the problem by buying some Bly on the close. It was such a nice signal on a day of good signals that I decided to give myself some leeway. Long at 30.5. Just as background, my total position size limit is below the available cash in my trading account and I have unused credit as well, so it's pretty conservative.