Regathering strength. Tue Mar 1

The Asx 200 is up 15 after an hour as the DJIA and S&P500 finished with their best February performance since 1998. The local market managed about 2% or 77 points plus a few dividends. I don't mind the Xjo chart, it's not a fast uptrend because there's a lot of overlap of highs and lows, but on recent performance, there's a good chance that 5000 is challenged again in the next couple of weeks.

I've put on a new short position in Oil Search. This is a long term development story and the stock spiked after the result to a new high which quickly failed. I'm using 725 as a stop and have sold at around 698 average.

I sold out the last of my Lynas, too early at 199. It seemed to be stalling at yesterday's high and with the index giving ground after a 25 point rise early (now up 10), it was a reasonable bet. I also didn't have a big position. I'll still look for dips to get back in.

Talking to a broker yesterday confirmed my thoughts about Linc. The management is capable but also big on the talk and a lot of investors are tired of it. It's a shame though, the coal deal with Adani confirmed that they are astute asset traders. The chart is still quite healthy with a strong chance of accelerating up to a new high above 305.

Qantas tests your patience, like most airline stocks. With oil prices calming down, I thought there could be some strength today. The stock is testing lows again after the post result bounce but it's the fourth day with downside very limited. It looks more likely to manage a couple of cents lower and then rebound, so I'm holding although glad to have replaced stock with calls.

1.52 The index is back to square for the day. It seems overdone and there's no obvious catalyst for the weakness. The current account deficit was a few percent larger than expected but the previous one was upgraded to be substantially smaller. The Reserve Bank are meeting but nobody is expecting a rate rise to be announced at 2.30.

2.28 US listed, Canadian based, fertiliser company Potash has risen 10% over the last 4 trading days which usually gives a good pointer to Ipl. It's taken a while but the stock has moved through last week's high.

Ausenco had a reasonable report but nothing to set the world on fire. Recently, the chart has seen a series of short spurts followed by slow retracements. I've just bought at 330, anticipating another charge up.

The cash rate is unchanged and the commentary is along swings and roundabouts lines with the net position being that inflation is under control.

4.04 Just waiting for the match now. Aax sprinted up into the high 340s and I sold a couple at 343 on the way. This helped to soothe some of the disappointment at missing out on most of the Lynas move.

I sold a few Ozl at 164.5 this morning and they've drifted back to 161.5 through the day. I'm hoping to buy a couple on the match at 161.

4.11 The index closed 5 points lower in a feisty display of pessimism.