Thursday, December 10, 2009

Push me - pull you. Thu Dec 10

The European indices were pulled down again on more credit concerns, this time about Spain's sovereign debt. Meanwhile the US markets pushed up after the European close on renewed optimism about an upswing in their domestic economy. It's only half an hour into trading and we haven't made up our mind which way we're going with the market having been up and down in a tight range and down 4 points at present.
On a technical level the Spi and the Xjo made a minor new high compared to yesterday, further closing the gap to the break below Monday and Tuesday's low. It suggests to me that after our relatively good performance yesterday we might drift off today.

11.40 Unemployment at a better than expected 5.7% has given the market a little lift and we're up 10. The AUD has also spiked three quarters of a cent. I've bought back my Djs short at 541 (v 561.5) and the second short in Awc at 155 (v 157.5). Asciano is close to a cut and Lgl is not far from a reversal buy.
2.58 I've spent a fair while out of the office today but I'm pleased to see that the market has eased back and is now down 24 points. A couple of hours ago I went long Centennial Coal on a reversal at 336. It's not the clearest chart around having just fallen from a lower high, but equally, it's a higher low and a reasonable rebound can take it to 345-450 quite quickly.
My other trade was a small short in Goodman Fielder at 159.5, as the rally petered out. I'm trying to complete the position with a further sale at 158.5 but so far I haven't got set.
4.15 A small rally in the last half hour left the Xjo index down 31 points. I've left most positions unchanged, 2 longs and 7 shorts. I bought back a third of my short Tse position at 389 (v 399). In the last 10 minutes, I've read 3 different technical opinions, all of them urging caution. Daniel Goulding and "Charlie Chartchecker" are quoted on FNArena and David Rogers, the Dow Jones news wires technical analyst is the third.

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