Monday, October 25, 2010

Copper minnows in favour. Mon Oct 25

A flat night on Wall Street but some good strength in the Aussie market as the expected apocalypse still hasn't arrived and we're playing catch up.
The Xjo index is closing in on recent highs and this time (!) should get through.













In the copper sector, Equinox minerals has made a takeover bid for Citadel resources which has been well received with a 7% rise in Eqn shares. It has helped Pna to a nice little bounce today, up 6 now at 81.
Gold is up over USD 9 in the Asian session which is more significant than usual because it's the first response to the G20 meeting which didn't come up with anything stringent regarding the currency wars. Gold has also had a decent pullback so a normal sort of correction is plausible.













I was looking around for a long in order to trade a gold bounce. I've bought back into Avo but I'm using the 60 minute chart so will have to be alert to get in and out quickly. I got long at 308 with a 299 stop, anticipating a break above 310. I'm looking for a quick move to 330.

4.14 The Asx 200 index held most of the gains to finish with a rise of 62 points. Asian markets are firm and European and US overnight futures are also strong as the takeaway from the G20 is suggesting the QE trade is still on. Gold is up USD 11 and Avo went ok to finish at 320. I sold out a quarter of the position there.
My positions are strictly long and they all rose today as you'd expect in a strong market.
The index broke the range today with a high of 4725 and while it closed back within at 4710, it's still the best finish since April.

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