RBA to sit pat. Tue Dec 7

Recent commentary and a weaker economy suggests that the RBA are not going to raise rates at their meeting today although there is talk of rates having been pushed a notch too far, there is no serious suggestion that they'll be wound back. Instead, we're probably due a prolonged period of rate stability.
Best news for me this morning is that rare earths continue to rise and the US listed Molycorp surged 18% on reputed interest from Sumitomo in buying a stake. It's funny actually, because I'd been wondering why the Japanese haven't stepped in to the rare earths market with a corporate tie up especially now that the Chinese are locked out of Australia following their Lynas investment being knocked back. The problem could be that Aru already has a big stakeholder, East China Exploration, although they didn't participate in the recent placement so have been diluted to below 20%. As for Lynas, the Japanese have stuck to supply agreements. Wishful thinking on my behalf, perhaps.
I bought a few Aru back at 124. Lynas is up 4.5 at 155.5. I've also sold a handful of Awe at 178 and shorted more Ipl at 390.
The Dow looks a bit tired, with a couple of small range days after the big run last week.

10.40 I have a new long position in Karoon. Bought at 725 as it breaks yesterday's high, which was a reversal day after a new low which followed a long correction. It's back to the support levels from where it ran. It surged on news of a juicy IPO in Brazil which was designed to spin off valuable South American oil fields but after the failure of this issue, the stock tanked. Stop is a little below 700.

12.06 The market is rising like a phoenix from (the wreck of) the ashes. Up 25 now with most of my positions going well. I bought a couple more Kar at 730 to take my average entry to a tick below 727 and that turned out to be a good move as they've kicked on to 745. Avo is anothe star performer as it finally shows signs of acceleration.

12.35 About to leave for a physiotherapy appointment. Lynas is back under pressure, unchanged at 151 now after hitting 158.5 early. Interesting to see if it holds 148.

2.58 The index is now up 44 points so we've convincingly shaken off the malaise. I guess that a lot of banks have wound down for the year so it's probably going to be fairly illiquid trading. Here's the Xjo chart.

I left some Lynas on the bid at 149 and missed them as they touched a low of 149.5. I've paid 152.5 as I like the pattern of a slightly lower low after a decent attempt at a bounce.
Here's the 60 minute.

3.06 Just bought a few Wsa at 605 as they finally escape from a two week congestion which has contained a little buy signal.

3.53 Out of some more Awe at 183, which is up 7.5 on the day. Also a couple of Karoon at 750.

4.14 A late sell off but a rise of 38 points nonetheless. The Hang Seng and the Kospi were firmer by about a half a percent and US S&P futures are a couple of points higher.

Sold a couple of Avo at 342 on the match. Only disappointment were Aru and Lyc which were flat to lower. I'm hopeful that the Lynas correction is over though.

Oh, and the RBA kept rates unchanged. Outlook is for rates to be steady for a few months at least.