Arm wrestle. Fri Oct 16

The US surprised with a modest gain, once more supported by better than expected results. The local market, at 11 am, is up a modest 7 points and has oscillated between up and down 10 points since the open as the general tendency to sell off after a strong week is countered by the fact that we spent most of yesterday grinding back.

My positions are mixed, but slightly disappointing, because oil rose sharply overnight but my energy stocks haven't done much.

Tse is firm again today, so after hesitating yesterday, I've gone long this morning at 435. Here's the daily.

11.25 Just stopping out of Esg at 94.5 (v 96.5).

11.35 Also stopped out of Mmx at 169 (v 165).

Pacific Brands is interesting, it has pushed on to recent highs this morning which is presumably due to the continued strength of the Australian dollar. Weekly resistance is at 160 and it's trading at 142 so there's room for a trade. Long a few so far at 142.

12.35 The market has chopped back down to a loss of 4 points. I'm not completely convinced about Tse, not enough to buy a full quota, so I've sold it back out at 437 (v 435). I did buy some more Pbg at 143, average is now 142.5.

1.19 The bears are winning the arm wrestle as the market has another leg down. Out of Aoe at 443 (v 437.5), it's unchanged on the day and going nowhere fast. Just long Mig and Pbg now.

1.30 The week has been ok, profitwise, but nothing has really kicked on for me. For example, in the last few days I've given Aoe, Cvn, Mmx and Wsa enough time to accelerate but ultimately I've chopped them all for small profits. Hope springs eternal and I'm pleased to see Pbg edging up in a falling market, trading at 144.

4.10 The market has just closed after another gap filling day, down 23 points. I've tried to avoid forcing any trades. Mig has fallen to 153.5, just above the trading range break and Pbg has held well to finish at 143. More on Monday.