Overcompensation. Thu Nov 18

You never know what it's going to be with the situation which occurred in Aax yesterday. There could have been big upgrades everywhere and the price jumping another 20 cents on the open or a more modest reappraisal in the cold light of day. It's been the second of the two and, at 11.20 am, the stock has slipped 15 cents to 276. I sold another 2.5k at 286 soon after the open and I'm left with 10k. I'm just playing it by ear now. I think I'd buy some more in the mid 260s. Here's a 60 minute chart.

I think the market might have bottomed in the short term. This morning the index opened stronger by a few points, then was down 10 and is now square again. The early strength and sell off was predictable but it wasn't a sure thing that we'd steady up again.

I nibbled at a few more Awe and Ost at yesterday's entry prices of 168 and 260 which is roughly where they are now. Aru held yesterday and is back up to 110.

There is a plethora of stocks which have come down to support and I've picked Avoca as a new trade. There's some slight overlap at 320 but it seems to have held. Long at 323 with a stop at 315ish. It's just starting to move actually, 330 after spending most of the morning around 320-322.

11.42 I was worried about Linc having another retracement leg down but the situation looks rosier this morning. On the back of some gas drilling success in Alaska, the stock has bounced back to 241. There's a good chance now that it can continue to run. A trade at 246 would confirm yesterday's low as a higher low and provide a minor buy signal.

 1.47 Avoca has drifted back to 322 which is a drag because gold is up $11 and most of the golds are bouncing nicely. Aax is at 267 and I picked up a few at 268 with more on the bid at 265. The market is still quite flat, up 3.

3.05 Asian markets are up 1% or more, pretty much across the board, and gold is up $13. US overnight futures are up about 0.7%. The Aussie market is firmer by 8 points and is making a buy signal on the 60 minute charts but we're continuing our pattern of underperforming.
I've accumulated some Aax at 265 and 268. They might have stopped falling. Nothing much has changed otherwise.

4.16 The Asx 200 index closed at 4640 which was a rise of 16 points; a lacklustre performance in relative terms.
My positions were little changed with the exception of a rise in Linc to 241 and a 24 cent fall in Aax to 267 which is about the average price of the extra stock I bought.