Just to confirm it to myself I had to sell out of local retailer Djs at 438 for a small loss. This was always a numbers trade where the risk/reward was ok but I certainly didn't have anything invested emotionally in getting this one right. The best way to be, I suppose, because it was an easy cut to make.
I got back into the Aru at 117 on the open and also bought a few Lynas at 154.
Ipl had a successful bond issue in the US debt market and opened back above 380. I've shorted some at 383.5 with a tight stop. It looks like a potential head and shoulders and, once again, has a good risk/reward profile but if resources bounce then it's unlikely to miss out. Stop is around 390-392.
With gold rebounding strongly in Aussie dollar terms, I hunted around for a trade and decided to buy some Perseus as the open was likely to push them above the previous day's high and put them close to making a buy signal with a trade above 328. Long at 320, stop is 308. It's been a tricky stock though where it's kind of trending but with a lot of overlap of swing highs and lows.
12.06 The market is just below the flat line. It has reversed from the day's low and the stronger stocks are doing reasonably well. Talking of stronger stocks, I've lost patience with weak stock, Ost, and sold out at 249 as yesterday there was finally some strength only for it to evaporate through the course of the afternoon. It's a high probability now of pushing down further just as it did in early November after a late October consolidation failed to develop into a rally.
I was watching a sketch from "The Mitchell and Webb look" which summed up what I'd been thinking about re my trading. It's a blindingly obvious point but elusive in practice.
It was along the lines of "You know how we do all these sketches and some of them are really funny and some of them are not that good". "Yes". "Why don't we just do the funny ones?"
12.20 Anyway, I need to go back over my trading and confirm my suspicions but I feel like I should be able to cut out a type of bottom picking trade which isn't doing me any favours. I don't mind trying to pick levels where a retracement might stop as long as there's a clear trend which hasn't been breached but I don't want to be trading retracement rallies in downtrends. So the One Steel trade is quite iffy while I'm content with the Awe trade even though it's been grinding against me for a couple of weeks because I think there's an incomplete uptrend which is still intact. It may be an uptrend in a stock which is weak from a longer term perspective but the risk/reward is good and clearly defined, given that I would hope to see a rally close to the recent high.
Lynas is up to 164 while Aru is at 120. I bought more Lyc at 159 and Aru at 121 to add to the early bargains as I'm trying to stick with strength.
2.40 Back from a quick trip with my daughter to buy her a replacement phone. Chinese markets are still lower but they've recovered a little while the Aussie market is close to day's lows, down 25 points at 4560. Last week's lows were at 4551 and 4557 and we've already been to 4557 today. My positions are ok though.
3.32 Like an indecisive depressive, the index has stepped away from the ledge, recovering to 4574.
4.03 I notice that the Indian PMI has come across the wires, also better than expected. With Australia's GDP growth slowing we're the exception after better than expected numbers in most parts of the globe over the last couple of days. 3 year rates have softened by about 25 bp in the last week or so which might help to keep the Aussie dollar subdued. Good for the exporters which includes the mining sector.
4.10 The prozac kicked in and the Asx 200 recovered to close up by 2 points.
Lynas was the pick of my stocks, finishing with a rise of 10 to 166 and here is its very nice looking chart.
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