Dipping a toe. Tue Jul 20

I'm still pretty much sidelined but starting to dip my toe in the water. Overnight, there was a tepid rally in the US and post market some weakness, so I wasn't expecting too much buying today. However, with more than an hour gone, we're up 7 points. I'm paying attention to the chat this morning on CNBC about the Chinese government's loosening of financial regulation, particularly around the Remnimbi. I won't pretend to be on top of the details or the implications but the pundits are pretty positive. From my fairly simplistic charting point of view, I'm interested in the Shanghai index and whether it can rally again today.
Overall, I'm still bearish in the short term, but only mildly so, and can't see a lot of value in any short positions. I've also bitten the bullet and reinstated a long position in Alumina. I cut at the first possible point yesterday, 146.5, only for the stock to hold the next level down as it bounced off 145. It's got the potential to be a double bottom and there's not really a lot of selling momentum, more like some chopping around near the bottom of the range. The upshot is that I've paid 149.5 with a stop below that 145 level.

1.04 pm Chinese markets are firm again with the Shanghai index through 2500 and the Hang Seng up over 1% as well. The Aussie market has joined in the fun and is up by 34 points with most sectors moving.

One Steel has been testing my patience and it's one of the laggards today, but it's beginning to look as though it will hold the recent low at 276. I bought a fraction more at 282.

2.12 It's turned into a strong day, up 54 points or 1.2%. RBA suggestions that rates are on hold for as long as possible has helped things along. The action today has also raised the possibility that yesterday's fall is as much of a pullback as we're going to get. I'm still undecided but am reasonably well placed for the time being.

4.12 We finished up around 1% with the Shanghai market up well over 1% now and the Hang Seng following suit. There's optimism that the domestic economy will be allowed to substitute if export markets slow too much.