The Asx 200 index pushed on to a minor new high at 4786 but quickly lost momentum. It's still below the November high and well below April's peak above 5000. Looking at the last 6 or 7 months, the index eventually forced its way back through 4600 in the middle of September and has spent most of the rest of the year struggling to push higher. The first attempt in early November plunged straight back to support. This run up has been less laboured but is still very cautious. My take is that we might just keep grinding up, climbing the cliched wall of worry.
Molycorp is the largest of the US rare earths stocks and it ran up 13% last night on a tie up with Japanese company Hitachi. It gave an early boost to Aru and Lyc but they're barely up now. Copper was strong again and Ozl is up 2 at 174. If Oz Minerals pushes through last week's high of 175.5 it reduces the prospect of a retracement rally and increases the chances that the share price could accelerate to new highs. Trouble is, there's so little interest now that it might have to wait until the new year.
4.12 The index closed higher by 6.5 points on a quiet day.
Aru and Lyc rallied again after the initial pullback and I sold a quarter of my Lynas out at 164 to cover the possibility of a second leg down if it fails to pass 166. It closed at 166 so looks pretty hopeful. I added a small amount to my existing position in Aru at 121.5 and they closed at 125.5. Only blot on the copybook was Aax which has retraced to 312. I didn't need to chase but will wait for a sign of a turnaround on the 60 minute chart and look to buy more if it holds above the breakout level in the mid 290s.
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