Top of the morning. Fri Mar 11

It's just before midday and the index has rallied from the opening lows as some bargain hunting appears. I'm wondering if we've had the intraday high. The Asx 200 is down 36 now, a touch off the best.
Yes, the index is oversold but other indices are moving into an acceleration phase with regard to sell offs so the odds are that we'll walk into another negative lead on Monday.
I've done my share of bargain hunting this morning but have tipped most of them out now. My short book is pretty good but Sbm has hurt again - despite being offset by Pru in the gold sector - and I'm hoping for, but not expecting, a rally to sell out my long.

12.09 Anyway, this is the daily chart for the Xjo. It does look over the top and maybe the bargain hunting will continue all day.

However, this is the DJIA chart. It just made a sell signal on the close and for those who follow moving averages, it also closed below the 50 day MA.

12.47 The index is down 47 and it's touch and go whether it makes a higher intraday low and chops up again. Chinese inflation data comes out at 1pm, our time. The HSI is down two thirds of one percent, presumably waiting on the data.

There's some good economic research from economics consultants, Gavekal, which is quoted on the FnArena website. The gist of their longish article is that it's high time that the Fed stopped pump priming the US economy. Everyone else has already taken their foot off the gas and, in Australia and Asia, the brakes have been applied for some time.

1.08 The Chinese markets didn't seem to mind the figures initially but the Aussie market has tumbled to new lows, down 66.

2.09 The HSI is down 1% now as it emerges that inflation is still not under control and harsher tightening measures are on the agenda.

The Asx 200 is hovering around the day's lows and I'm buying back half of my shorts since I don't see a lot more downside today but can see the possibility of an early sell off on Monday.

Hedged some more Fmg and Osh, bought back the last Awc and bought back some Paladin and Perseus. Also sold out half of my Sbm at 198 average, following some jobbing.

The only other position is a short in Aax. The stock is actually up a cent today but it's not widely followed and, although it has recovered, the early weakness broke support.

3.28 Just back...it took over an hour to change mobile phone plans, get a new phone etc. The market has recovered 20, 25 points and a few things that I was thinking of punting have rallied. Never mind.

My actual positions haven't changed much, just a touch firmer.

4.14 Sold off again into the close and finished at 4645, down 55 points. I bought a little more here and there because if the leads are strong then we're oversold and will probably gap up. If they're weak and stocks gap down then it will still probably be a buy on open. Or not.