Knife juggling. Wed May 5

Momentum still favours the downside and even the US market responded last night as Europe capitulated. It's 1pm here and the market has been pretty steady for a while, down about 85 points or 1.8% with Asian markets much the same. We led the falls to an extent yesterday by ignoring a strong US lead and after the panic selling in resources, which carried through into the opening today, there has been relative strength in the sector.
It means I've half got away with a couple of undisciplined trades yesterday afternoon. I eventually averaged in to Awc yesterday at 154 and that fell early to 145, recovering now to 151, leaving me underwater but relatively unscathed. I gave it some room as I figured that the open would be the worst which turns out to have been right for resource stocks, at least. The reasoning is that the resources super tax is not law and faces 6 months of negotiations with miners and we're in an election year so one week drops of 30% were quite excessive.
I punted a few stocks early and made some good gains in the iron ore sector while, finally, the stuff I'm short, like Challenger and Commonwealth bank, is getting sold off. So, after a week or so of missing opportunities and breaking even, I seem to be back in sych.
I've put on a few small longs here and there with Bluescope being representative of the type of pattern.
It's simply based on a scenario where the February/March lows hold and the stock has a retracement rally. Essentially, it's a quick countertrend proposition - not great, but then today is not a day when there are short opportunities presenting themselves. Long at 248 with recent lows at 238. I'd be prepared to sit through a blip below support but not a serious breach of it so the stop would be somewhere in the mid 230s. A standard sort of retracement could get to 270-285 so that's what I'm angling for.

2.46 pm The resources rebound is still on. Bsl is up to 252 and Awc to 156 where I've just sold a few as my entry was premature. It does look like it's setting up for a rebound but having diced with danger, my inclination is to reduce the risk slightly, especially as I have managed to enter Bsl and a couple of others at better stages. Here's the updated Awc chart, as I type it's up to 157 and setting up for a key reversal day which would imply some follow through over the next couple of sessions.

4.12 pm Some outperformance compared to Northern Hemisphere markets by the close with the Xjo down 1.3%. Awc didn't manage a key reversal day as 157 was the top - it would have needed to trade above yesterday's high - but it closed at 156.5 and has made a nice reversal. I'm hoping for another day or so of relative strength in the miners.