It's funny, I'm looking for a higher low in the market which we might have already had, but my book is skewed to the downside with long in the golds really more of a bet on a falling market.
It's nearly midday and the market has ignored a soft lead and continued yesterday's late, late rally to be up 43 points or 1%.
My general thought with the Xjo index was that it would retrace towards around 4440, where it fell from on Monday but I wasn't expecting it to get all the way there. Here is the 60 minute chart.
Looking at the chart, it's make or break for that idea.
Mainland markets in China were strong yesterday and I think that, and bouncing commodity markets, has been the driving force today. Strong Chinese exports for May are possibly helping the rally along although so far the Shanghai market is pulling back.
I do have a new long position in Incitec Pivot around 290. I'm looking at this having made a higher low, with my stop around 270. The last retracement was quite strong so I think there could be some reasonable buying again.
2.44 In a development absolutely typical of markets, the Xjo index has rallied just enough to push through what I thought might be resistance but not to convincingly smash it. At least the gold stocks are rallying which is keeping me out of trouble.
3.34 St Barbara is strong, I'm out of half now at 37. The market is still up 1%, sitting at 4430.
4.12 Funny old day, the index hung around the highs, closing up 50 points but just below minor resistance. Tomorrow could be weak, being Friday, but I'm feeling more bullish than bearish.
No comments:
Post a Comment