Braveheart. Thu Jul 22

It's only a half hour into the trading day, but the local market is shrugging off overnight weakness and seems to be gaining confidence that there are bargains to be had in the resources sector.
Ozl is an example of that. I sold out too early and in the event of a reasonable pullback I'll be interested in getting long. In Ozl's case, it's being touted as a takeover target while in general, I think there's been a recognition that copper/gold stocks are cheap and possibly, with the iron ore price slipping, active traders are looking for the next movers.

With that in mind, I've bought a mini version of Ozl, Pna, who mine copper and gold in Laos. They're a liquid trading stock and the price earnings ratio is low. Mine life has been extended and the company suggests that there's the potential for further resource growth.
I sat on the bid for most of the day yesterday but couldn't get any at 52, so late on I paid 52.5. I've added more at 53 today. The stock price might accelerate if it can get through 55.

1.34 The hearty confidence was short lived and the market is down 0.6%. Nevertheless, the longs I'm holding, Awc, Lnc, Mre, Ost and Pna, are mostly steady to up and they're all in the resource area. My short in Ipl is a tad firmer too and I added another short today in Stockland Group at 386, which is at least following the market down.

Ost is the most precarious looking of the long charts but it's hanging in there, so I am too.

4.14 The downward drift continued to leave us down 38 points but resources held up at the expense of financial and industrials.