Just hanging in. Fri Dec 18

The Xjo index is down 1.1% at 10.53 am which is a slight outperformance I think, given the weakness in European and US markets overnight. If yesterday's performance on the Xjo implied that the rally over the course of this week was over, then today's action suggests that we could be ready to drop towards the bottom of the trading range, just above 4500.The weakness overnight was driven by the US fed confirming a reduction in quantitative easing which encouraged dollar buying and an unwind of the carry trade.

Collateral damage for me this morning is stopping out of Lgl at 312 (v 329) as the dollar strength led to commodity weakness and a $40 drop in the gold price. Conversely, I've cut my All short at 395 (v 390) as their USD earnings have increased in value with the AUD back to .884.

I've also sold the last of my Mgr at 154.5 (v 149), a bit prematurely and sold the balance of Ost at 314 (v 303). This last one was a straight reversal - at least my trade entry was on a reversal - and I almost sold out last night as I'd been long a few days and often that's enough with these. It still looks reasonably bullish though.

11.24 I'm quite excited about the prospect of a trend developing. Speaking to a few traders recently, they've found it hard going in the choppy market and while I had a good November, December has been mildly difficult. I've just had to cut another position, stopped out of my long in Djs at 526 (v 540). So, the tricky trading continues this morning.

12.45 I shorted two stocks on reversals this morning, Awc and Ipl. They're both countertrend trades which I'll probably just hold for a couple of days.

Short Awc at 172...

...and Ipl at 327.5.

1.11 Just sold out Bsl at 281 (v 286). It's another chart that looks ok to me but there's a minor new low today, albeit in a narrow trading range, and the stock could easily grind down towards, say, 270. I got long expecting a second leg up with some decent momentum and that hasn't happened so it's reasonable to get out.
The market is only down 40 points and markets in this time zone are performing quite well generally. However, looking at the Xjo chart (at top of posting), the recent action looks poor. The rally this week was modest and unless a higher low is made here the possibility of continuation down is quite high. With that in mind, I've been quicker to cut my longs than my shorts today.

2.15 Despite the market continuing to rally - down 35 now - I'm still cautious and have cut my half position in Tse at 399 (v 397). I feel like it's forming a pennant and there's a lot of resistance up top if it's to get a move on. I might have got out just in time because it has just slipped to 395.
2.28 It's developing into one of those grin and bear it days. I've just stopped out of the last half of my Aio position at 175 (v 172.5) as it reversed from early weakness this morning thanks to a positive announcement. I waited a while to see if there was anything sustainable about the strength and after a couple of hours it has started to move up again.

3.33 Pretty much on our highs, just off 16. I'm a bit punch drunk at the moment after lots of cutting this week so I don't think I'll put on anything else today.

4.13 The Spi is selling off after the match. I sold out my last long in Gff at 156 (v 155.25). I could have stopped out earlier but it bounced after a minor low. However, as I mentioned earlier, I'm sceptical about the upside so I'm just clearing the decks.

Market down 20 points.