Base metals were hit hard last night, with gold and oil falling and the US indices were weak, Europeans even weaker. Nab has reported and jumped 2.7% but hasn't dragged the rest of the sector with it.
Here's the Xjo chart on a 30 minute basis. The last swing has come from Monday's high of 4832 near the close and fallen in a 5 wave pattern until the opening low this morning. It looks like a bullish reversal from here but - and it's still early - the buying seems quite tentative.
11.58 I've got to go out for a few hours and I'm conscious that the market could rally hard. It got in the black, pulled back to down 10 and is back to square.
Out of my Cgf short at 471 for a small gain but still holding shorts in Bld and Sek. I picked up some stock in Bld at 476 but I'm hoping that a recovery in resource stocks will leave these two flat. I know that Challenger falls into the non-resource boat too but it was a late, momentum style trade and the momentum didn't really eventuate.
I've punted a few resource longs. One of them is nickel stock, Western Areas. Nickel was heavily sold in London last night but the stock bounced off a minor new low yesterday and is firm again today. Bought at 657 and 658.
2.19 Slow but surely...the market is pushing up at a measured pace. Higher by 10 points now. Short positions in Bld and Sek are not squeezing up and longs are ok, although Wsa has gone nowhere.
Oil Search is another long; bought at 697 before leaving and some sort of bounce after the recent 3 wave fall is probably in order. It's up to 701 and needs a trade at 703 to push above the last 2 days highs.
4.15 The market held up, with a final gain of 14 points.
My book is now net long although the new positions are fairly flat. Boral slipped to 474 and Seek closed nearer the lows too. It was a day or recovery for the smaller resource stocks, I hope there's some follow through.
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