More weakness overnight and the Australian market is still suffering from the unwinding of AUD exposure as the USD strengthens. At 11.42 am, the Xjo index is down 1.5% which is a little off the lows. While there's no sign of a low, there is at least the possibility of a short term bearish completion with a new 5th wave low being made. Here's the updated Xjo chart.
I'm in an agressive day trading mood and have decided that's enough for the moment and bought back all my short positions. I've also gone long 3 or 4 stocks. Most of the positions are intraday but there's one which I'm happy to hold overnight and it has almost the exact set up as it did quite recently when I also went long One Steel. This time, like the Xjo index, it's got a slightly more completed 5th wave look, and as before I'm long at 317 with February supports around 300 as my stops.
4.13 Ost was probably about the worst intraday performer of my purchases today, closing at 313, so it's possibly fortunate I'm holding it overnight. The market didn't manage to rally and closed at the lows, down 1.9%. This is interesting as the major Asian markets rallied 1% or more off early lows of 2% down.
At the end of the day, I'm out of my shorts with a long in Ost and still holding the July calls in Lgl.
My son has recommended a good website to me, Paul Kedrosky's Infectious Greed, paul.kedrosky.com (I'll add a link). Today it features a speech from high profile economic historian Niall Ferguson about the consequences of unsustainable debt. It's quite long, but well worth a listen.
No comments:
Post a Comment