Tuesday, October 12, 2010

Drifting. Tue Oct 12

The US market traded thinly thanks to the Columbus day holiday and the Aussie market has drifted off 20 points in very light trading. The resource sector is unwinding some of the gains and golds aren't doing much either despite some more overnight strength.
My set of positions is fractionally down overall and I've already started to get some admin done. Maybe there'll be some sort of catalyst from Asian markets later on.

11.28 I've closed out my short in Boral, buying back at 443 and 439. I was targetting around 442 to buy this back because I'm not convinced that it's going towards new lows since the rally in mid September was quite significant, overlapping the June lows. Obviously, it doesn't look great and could keep falling, it's just that the preceding rally makes it less likely.
2.33 I've been out of the office since midday and the sell off has intensified, down 1.5% as some of the hot stocks cool down. It's put the Xjo 200 firmly back into the recent trading range but I'm not really sure what to make of it all yet.
3.32 I've made a decision now to just do nothing which doesn't ever feel like much of a decision. But my thinking is that the index had a very strong bounce off 4560 with two matching lows and just previously it had struggled to sell off too. In addition, 4590 to 4620 was previous resistance and will tend to act as support. Even those two lows were made intraday with one closing 10 points below 4590 and the other above it.
It means I'm just grinning and bearing it as all of my longs are now down, although none are extremely weak.

4.11 The Xjo 200 closed at 4618, a fraction above the low of the day, with a loss of 79 points. Kzl recovered to be unchanged and that was about the best it got for me, apart from buying back Bld too early.

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