It's probably foolish but I do think we'll see the market ease off as the day goes on and I'm sitting with a couple of short positions. I've added a new long and a new short also.
The long is in rare earths stock Arafura. I was looking at this bullish situation set up over the last couple of days and didn't quite believe it. Anyway, I've paid 126 on a confirmation of the breakout and hope it doesn't just stop at 130 resistance. My stop is below Tuesday's swing low at 112,113 and wave equality gives targets up in the 150s.
The short is in Western Areas which has had the big V bounce, looks as if it's had 5 waves in this leg up and has slipped below yesterday's low. Short at 671 with a stop around 680, while a standard 50% pullback of the move points to around 620.
I missed an opportunity to buy Lynas this morning. It got as low as 218 and I was watching closely but didn't pull the trigger. I was confused as to why it was sold down but in retrospect it was just closing a gap. Up at 228 now. I suppose I was also thinking that the rally is long in the tooth and there's no obvious support level on the daily chart although I was planning to use 210 which has provided recent intraday support.
4.18 Some late selling cut the gains to 24 points.
My long in Aru finished on its high at 132.5 and my shorts weren't great but ok in that I didn't have to stop out.
A bit of a wasted week, I suppose, but I needed a break after the mid March ructions and got busy doing other stuff. It wasn't costly but it would have been better to not trade at all since I didn't have a lot of enthusiasm or any clear ideas.
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