The US investment community used some weaker jobs figures as an excuse to whack their market last night and the DJIA chart shows signs of catching up to the rest of the world. Here's a weekly chart.
Here's the Xjo weekly. Our market (which looks like plenty of others) has moved well below the February lows so you could expect the Dow to show some more weakness.
Anyway, perhaps because there were fires to put out at home, it's the first day this week where there doesn't seem to be a wall of what I assume to be carry trade selling. After opening down over 3%, roughly in line with US falls, the dust has settled and with the sellers strangely quiet some bargain hunting has lifted us to a loss of only 2.1% at midday.
I've had a cut to make in Ost. It closed on support last night at 298 and traded as low as 281. I thought the open could be at least an interim low, so I held on and so far that's been a good decision as it has crept back up to 295. It's actually setting up for a bullish reversal so I'll hold off as long as I can and may keep some of this long.
In for a penny, in for a pound and having tried to buy the market intraday yesterday, I've been doing the same today but with much better results. Yesterday, I was inflexible as there was clearly plenty of stock around but today it was pretty clear that the big sellers had gone missing so I've been nibbling at the resource stocks that have been hardest hit like Fmg and Mmx.
1.45 Another wild ride as the market rallied to an intraday high of down around 1%. We're slipping back down again but there have been a lot of reversals today in individual stocks.
3.55 Down a mere 15 points as the whole market has had a reversal day. I've been reading about the idea of an echo panic on a couple of blogs today; the idea is that markets are reacting based on the events of 2008 while the situation, though dire in terms of the potential dampening in long term growth, is not immediately apocalyptic as it was then. It suits me to go with that idea anyway, as I've held on to my Lgl and Ost longs and bought Mmx and a couple of other resource stocks to hold overnight. (Lgl long term calls have been crunched again as my thinking has been confused; I should either put them in a long term account or trade around them actively).
My gut feel is quite relaxed right now whereas yesterday I was kicking myself at this time and also spent most of the evening either compulsively checking the financial tv stations or forcing myself not to. I tend to only do that when I know that my positions are wrong but I've been too stubborn or frazzled to get out in market hours. I may have ended up having a good day but the overnight positions did not help one bit.
4.16 The drop was 11 points by the close.
1.45 Another wild ride as the market rallied to an intraday high of down around 1%. We're slipping back down again but there have been a lot of reversals today in individual stocks.
2.02 I've been thinking about iron ore stock Murchison, after trading in and out of it all day, and have decided to buy some at 176 to hold. It's a situation where there's been a potential 5th wave low formed with a rejection of that low - at least so far - and although I don't have any really close stops, I'm prepared to risk 20 cents on the trade.
3.55 Down a mere 15 points as the whole market has had a reversal day. I've been reading about the idea of an echo panic on a couple of blogs today; the idea is that markets are reacting based on the events of 2008 while the situation, though dire in terms of the potential dampening in long term growth, is not immediately apocalyptic as it was then. It suits me to go with that idea anyway, as I've held on to my Lgl and Ost longs and bought Mmx and a couple of other resource stocks to hold overnight. (Lgl long term calls have been crunched again as my thinking has been confused; I should either put them in a long term account or trade around them actively).
My gut feel is quite relaxed right now whereas yesterday I was kicking myself at this time and also spent most of the evening either compulsively checking the financial tv stations or forcing myself not to. I tend to only do that when I know that my positions are wrong but I've been too stubborn or frazzled to get out in market hours. I may have ended up having a good day but the overnight positions did not help one bit.
4.16 The drop was 11 points by the close.
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