Friday, June 18, 2010

Yes, no, maybe? Fri Jun 18

After the US market battled to a small gain overnight and the Europeans had slightly bigger rises of around 0.5%, the Aussie market has risen cautiously so far. Up 0.4% at 11.19 am. I'm still looking for further strength and I'm planning to sell a few longs out if the market can push up above Wednesday's high. At present, the Xjo chart is still favourable but there's precious little momentum with Japanese and Korean markets flat. Here's the updated Xjo 60 minute chart.

Gold is still strong and it's a shame I sold out of my Lgl options, although I understand why. The reason is that it can be quite difficult to trade two different time periods in the same portfolio. In my personal superannuation fund, which is longer term, I've been able to hold on to a long position in a gold stock but in my regular trading book the idea is to get in and out quickly. Sometimes I don't get a second chance to get back in.
Actually, I have found a substitute. I've put on a long position in Medusa Mining, a small Phillipines based gold miner. This has been lagging and is tracing out a pennant style correction, I'm guessing. I'm long at 438 with a tight stop around 427. I'm a bit concerned that it's lagging for a reason and looking at the 60 minute chart, there's a chance that it makes another minor low before the correction is over. However, the gold sector is strong and the stop is close so I'm prepared to buy this. Here is the daily chart.
3.12 Still undecided with the market up as high as 34 points (24 now) but not quite reaching the Wednesday highs. Mml hasn't moved much but a few of the other lagging gold miners are having a run, so I'm hopeful. I'm restricted to trading in the top 200 but Rsg, which is in the top 300, is an example.
I'm also long Pna at 50.5 which I bought two days ago. I didn't feature it because I chased the entry having missed 48-49 cents. Anyway, I've just sold a few at 52 so I've averaged down a fraction. Pna is a copper and gold producer and not a pure play so I was unsure what would happen today with copper down 3% and gold up 1.5%. The answer is that it's stronger but lagging the golds.

4.11 Not much change, up 24.6 points. I'm out of Awc at 161.5 and some Ozl at 105. Added a few Mml at 443 and they've finished at 445.

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