Despite the drop, which is now 22 points, I'm much more sanguine about holding long positions. It seems to me that yesterday was confirmation that the month long sell down is over for now and the next week or so will see a rising market.
11.45 By the way, I mentioned the other day that One Steel might have issues with iron ore pricing affecting their probability. Ost are vertically integrated and are self sufficient in iron ore so this is a potential problem for Bsl but not Ost. It didn't greatly affect my Ost trading as I was guided by my reading of the chart but it might have made me slightly less agressive in cutting the position.
1.30 The index has stabilised and I've added a long in Fairfax, 44,000 at 173.5. The stock is probably in a trading range now unlike a lot of other stocks which are in downtrends. I'm looking for a rally towards the highs so a fairly modest target in the mid 180s. There's a higher low on Tuesday and although the best entry point was yesterday at 172, the slippage is not bad.
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2.49 Out of a quarter of the Fxj position at 177 for a 440 dollar profit.
4.20 A fairly typical "hangover" day finished with a small loss of 13 points on the index. Asciano was up 1 at 178 and Fairfax closed strongly at 179.
It's the nature of trading. Unlike most jobs, you have to accept that you're wrong time after time. Then you have to pick yourself up and try again.
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