So far, so good. Wed Jan 20

The US indices had a 1% bounce last night and the Australian market has rallied 39 points at midday but we haven't been above yesterday's high. That leaves me still working with the scenario that the next leg of a pullback is unfolding. I used some early strength to put on a couple of short positions. I think the best one is in Incitec Pivot so that's the trade for the day.

It's a counter trend trade so it's not the finest quality position but it failed to make a new high yesterday and finished by making a reversal bar. I expect another leg down to, maybe, 340 which would still leave the stock in a uptrend but imply a move back to the bottom of the trend channel. It was firm early and I sold 5000 at 368 and another 5k at 364. I plan to sell another 5k but so far it's not bouncing with the Spi.

2.20 Sold another 4000 Ipl at 356 about half an hour ago as it started to slide after a pause of an hour or two. Average is 363 for the 14000. The stock is on its lows now at 349 as the market has slid to be up only 15 points.

4.10 I bought back 4000 Ipl at 348 for a partial profit of 600 dollars. There was a brief low at 346 but the last hour has seen it rally to close at 352. Still short the balance of 10000 shares at 363. The market has drifted off all afternoon to be up just 7 points on the close. Markets in the region have generally ignored the overnight bounce in the US with the Hong Kong and Shanghai markets down over 1% and the Topix down half a percent.