Rate sensitive. Fri Sep 11

A cautious rally today but we're still holding onto 20 points of early gains. I read an interesting snippet this morning from a strategist suggesting that rates will stay low for a number of years in the US even in the teeth of an upswing. Meanwhile, rates will rise in Australia pushing the AUD higher - this will lead to a lot of offshore money chasing commercial property, with the REITs (real estate investment trusts) having been recapitalized.

This is much longer term than the situations I look at but it is interesting that most of the best charts at the moment are in interest rate sensitive stocks.

I haven't had a lot of joy with my positions this morning. Gbg is up at 102 but off its highs. Meanwhile, I've stopped out of Ehl at 87.5 (v 82.5) and Tpi at 156.5 (v 156, 158.5) on trailing stops. I've added new positions in Duet which owns gas and electric distribution networks and ING office fund, a property trust.

Due is making higher lows and has pushed past 157 this morning, the recent high. I'm long at 156.5. The average analyst target is above 200 and the stock is getting the odd upgrade so broker opinion is supportive.

I was too hasty in Iof and paid the top of the day which was 60.5. It's not a bad breakout though.
2.43 Duet is going very well, I bought some more earlier to take my average to 157 and it's up to 162.5 now. Iof is still below my entry point at 58. I'm a bit irritated because I was tossing up between buying Aix and Iof and plumped for Iof. Here's the chart for Aix. It paused for an hour or two at 159/160 and has pushed on again to 162 whereas Iof has retraced. I don't think there's a hell of a lot between them. In retrospect, Aix is breaking out of a tighter range than Iof so that could have been a clue. I went for Iof because being cheaper there'd probably be more leverage to a move.
4.10 The market is holding on to most of the gains but it's a very subdued day. Today and yesterday have been solidly up but my positions have gone nowhere overall so I'm a bit disappointed especially after outperforming strongly earlier in the week. With the exception of Gbg, which is a stock specific story, the rest of my positions are now in property or infrastructure. I feel a bit naked without a gold stock though as spot gold is pushing back about US$1000 again.