Overcooked. Thu Feb 11

With US markets, hobbled by heavy snow on the East coast, finishing with small losses, we've taken stock and after dipping into the red early, at 11.04 am we've gained 27 points. It looks like the selling was overdone in Bhp and Cba which did, after all, report solidly and both are now higher by 1%.
I've finished buying Ipl with the purchase of another 5k at 340. I've also gone long 4 other stocks although I'm not convinced about the market having made a final low so these positions may just be for the day.
The pick is Fortescue which has been bravely holding the 440 support level and looks ready for a short term kick back towards 500. Long 10,000 at 468.
Click to enlarge.

11.43 I've bought back 3,000 Bld at 569 as on the day after the result and with no upgrade pressure - ie one upgrade, one downgrade - the stock is holding and just down 3 cents. I might be clutching at straws a little continuing short so I'll watch closely. Loss was 864 dollars on the 3k.

Market's up nearly 1% now.

2.36 Figures today include buoyant employment numbers for Australia and better than expected inflation figures for China but the market has stalled since the China numbers were announced despite a solid start in the Hang Seng.

State of play is long Fmg (last 477) and long Ipl (last 344) with an ongoing short in Bld which is still at 569.

3.39 I'm uneasy about the index, still worrying about new lows but I guess I'm going to stick with my signals, maybe reduce position size a smidgin.

4.14 The market was held back by the weakness in Telstra today but still managed to advance 41 points.

Until the market has clearly turned, I'm cautious about long positions so I sold the extra 5,000 Ipl out at 346 on the match for a 300 dollar profit. I wanted to see it break through 347 but it never quite managed it today.

Similarly, Fortescue couldn't quite break through short term resistance at 481 so I sold out 3k at 475 for a 210 dollar gain but essentially to reduce risk.