Tuesday, April 20, 2010

Too much discretion, too little valour. Tue Apr 20

I was looking too hard at short trades yesterday and pushed it in Cey.
I was aware that the corrective move which I traded on Friday might have been complete since there was no clear top and in all likelihood the crucial support level is more like 416. Anyway, it hit 466 which was the recent high and has tailed off again. I did buy a couple back at 442 yesterday but missed buying a couple more on the close because of a persistent Telstra salesman on the phone.
Too little valour is in relation to the buying opportunities in iron ore stocks. Fortunately, Fmg and Mmx which both surged on the open, have eased back.

My trade for the day is a short position in Qantas which seems pretty obvious in relation to the threat of the Icelandic volcano rumbling on for months. Still, I'd been waiting for a plausible set up and got it today. Yesterday the stock just fell early and partially recovered while today there was some mild early strength which faded so I shorted at 292. The recent high is 302, so my stop is a little above that.

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