I've taken the opportunity to get out of a couple of longs which weren't going anywhere; Fmg, Mmx and Mbn. I've also sold out half of my Awe at 174 as they hit a touch of resistance.
By contrast, Challenger has made a little buy signal so perhaps my theory that it could have made a higher low a few days back is going to be borne out. I've added a handful more at 358.
Linc edged as low as 172 in early trading but has rebounded to 182. I thought that 168-170 would be a crucial price band, the peak of the previous run up, and it was gratifying to see the stock hold that level for the time being. I traded a few extra shares, buying at 174 and selling at 184. I'm holding on to the rest while that support level is maintained although I think that 200 might be a more realistic short term target now.
As per the plan, I'm not looking for new positions with the index approaching resistance and reporting season ramping up. If something compelling emerges then I'll trade but mostly it's a case of stocks renewing rallies after a couple of days of shallow retracement.
3.30 One of those stocks that may offer an opportunity is Western Areas. It's still correcting from a sterling run up to 515. The chart is forming an a-b-c style retracement. It could just form a pennant which probably won't be tradeable but if the correction is deeper and drops below the low of the "a" wave down, that's when I'll get a chance to buy for a run up to a new high.
To continue my fine tuning based on the 10 minute Xjo chart...having held up above support, it's now shaping up for a run at Tuesday's high, perhaps tomorrow.
I don't usually track it so closely but if I zoom out to the daily, you can see that we're approaching the peaks of the May and June rallies and this particular wave is quite extended.
4.10 The market has finished in the middle of the day's range, up 24 points thanks to a minor late sell off. Cgf, Lnc and Ost all performed well while Awe closed down 1 at 170.
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