Nuanced. Fri Sep 17

My apocalyptic fears about the market were premature and on reflection, the market situation is more nuanced than I thought. I'm still looking for a short term top soon, although I now think it will be next week. Quite a few of the stocks I follow look like they are completing patterns but often with the prospect of a minor new high. That could be reflected in a similar outcome for the Xjo 200 index.
Here's an example, Fortescue. This might have made the minor new high but I don't want to short it towards the bottom of a congestion pattern. I'm looking for something around 495 to 500.

By contrast, BlueScope steel has pulled back to just above the previous swing high of 239. I'm long at 244 and looking for a quick move to a new high around 256-260 but not necessarily expecting too much more.

The 60 minute chart is more enlightening. It shows a little acceleration up to a double top at 255 and a pullback to 241. A standard 5th wave should make a new high and even a failure might get up to 252, say.

1.53 The market is pretty solid, up 31 points. There was an attempted sell off after the initial rebound but it looks pretty bullish in the short term. I'm monitoring three stocks to short; Awc, Fmg and Tse and they're holding up pretty well so I may be able to get short at the levels I want, early next week, I suppose.

4.10 A good day for the market as it rebounded 34 points although a lot of closing volume - a portfolio maybe - took the edge off the gains.

Earlier, I put on a long position at 304 in Ost; it's had a pullback within a trend like Bsl but is not as advanced.