Monday, March 22, 2010

The less said the better. Mon Mar 22

Despite getting a reasonable move today - 38 points down at 2.40pm - it has been very lacklustre.
The small amount of money I made on some intraday stock trading was eaten up by costs because the moves were small and didn't continue on. I did make a few points out of the Spi where the costs are lower but that has also failed to trend.
As for my overnight positions, I'm out of most things as the recent pattern of a slow grind up provides very few opportunities. I'm not so concerned though, in the past I would have been trying to make things happen which is usually costly as opposed to just waiting for opportunities to present themselves.
I'm tending to think that the rally could be over but there's no proof at the moment. Here's the Xjo daily chart.
Click to enlarge
In a way that's fairly typical for a retracement rally, the first leg up was choppy and cautious since when there was a much more confident 3rd wave up followed by a run up to new (retracement) highs on slowing momentum.
In the USA, the indices have behaved in a similar fashion except that they rose to new highs. Nevertheless, Friday's modest 37 point drop in the DJIA was the biggest fall for a month and overnight futures are down as the healthcare reform package is passed by the House of Congress. The Hang Seng is down close to 2% today too so we're starting to look like there's room to fall further.

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