Disaster fatigue. Thu Jun 3

It looks like the market is tired of bad news and last night saw a nice bounce in the US indices. Nice because my positions are predominantly long and my one short position in Sgp hasn't gone anywhere so far. It's 11.23 am and the Xjo index is up 2% and is on the day's highs.

My featured trade is a long position in Murchison Metals, an iron ore stock. After the big sell off this has been in a fairly tight range for the previous 8 trading days and with a stop around 180, I'm looking for a move towards 240. I had a few on board anyway but went long some more today at 201.

In the short term, I've been working with the scenario that the last few days of pull back hadn't overlapped the congestion on May 26 and 27 so that there was a strong chance of a 5th wave move to a new high. We're almost there now so I need to be careful and take some positions off, if necessary, because there may not be much left in this rally.
To be clearer, I'm still working with two main possibilities: the one where the rally reaches about 4450 to 4500 and a more bullish case where it swings up towards 4650. Under both scenarios, I felt that there was more upside but now it's trickier because this is where the potential outcomes diverge.
When I look at individual stocks, I can see room for more gains so I'm leaning towards the bullish case.

11.49 It's still a fast moving market so that my stops and targets are generally diverging away from where I actually get out of and into trades. I'm persisting with setting these levels though because when things settle down it becomes easier and wiser to stick to them. At the moment, time spent on any swing is more important than usual; it's always a key factor but in a fast market even more so.

3.28 The market is up over a hundred points with pretty much everything higher. I've just had a look at the top 100, only 4 stocks down (small amounts), 2 unchanged and the rest up. It bodes well for another up day.