Buzz Light Beer. Fri Oct 23

Normal service is resumed as the market has bounced 42 points in the first hour.

I've purchased Boart Longyear at 32.5. It's a stock which has spent a long time digesting the large rights issue in August but may be ready to go to infinity and beyond or perhaps the low 40s.

Lynas has been pulling back sharply as we await the issue of rights at 45. Today is the deadline for acceptance and it should be 100% as the stock is trading at 55. In recent months Lynas has tended to recover sharply from steep pullbacks and usually a simple break of the previous day's high is a good enough signal. I've bought at 55.5 and 56 with a little trepidation because yesterday the stock did blip above the previous day's high without carrying on.

I've been pushing too hard all week and have cost myself by cutting things for no good reason. One of those is Resmed and having looked carefully through all the charts last night, I think this is one of the better stocks around. Long again at 540. I had one position overnight in Sek. I sold half at 675 (v 661.5).

12.39 I've read some research suggesting that it might be time for a switch back into resources as Chinese growth continues to be solid and growth generally is a lot stronger than was anticipated a few months back. I've bought Western Areas at 519 as the stock edges above the level set 7 trading days ago.

3.15 I've made no further changes to my positions although I'm regretting not selling Seek out as they've slipped back to square. Although I'm largely focussed on long stock opportunities I can't help noticing that there are a lot of sell signals coming through as the market tops out and there's more of a mixed picture. Here's Esg for example.

The stock retraced through to mid October and then failed to push on this week. So you've got a lower high that didn't reach resistance at 100 and now a sell signal. Kar and Mmx are similar.

4.10 The market has traded in a tight range all day but, as I mentioned earlier, it's unusual for a solid up day because I can see that 18 out of 200 stocks fell by 2% or more. I sold out the last half of my Sek at 666.5 (v 661.5) and bought a handful more Resmed on the match at 541.