At first glance, the US indices looked to have had another weak night with the DJIA down 69 points but most of that fall was from one stock, Hewlett Packard, and there was a 100 point recovery from early lows. Meanwhile, the S&P 500 and the NASDAQ closed flat. Metals and oil were mixed with copper edging higher again despite weak US housing numbers.
With 40 minutes gone the Asx 200 is down 5 points in a very cautious opening period.
One of the other fresh longs from yesterday was in OZL at 142.5. The stock may have formed a higher low and I'm looking for a leg up into the 150s. Downside momentum has stalled and the copper price is supportive. The stock is chopping around but has just pushed up a cent to 144.5.
11.40 Wages inflation came in below expectation at 0.8% for the quarter. The market had already worked its way to a gain of about 15 and that's pretty much where it is now. What's interesting though is that the daily chart shows a break of the last 2 days' highs. When is this significant? I think it can be a good indicator after the sort of 5 wave downdraft that the index has just experienced. I don't know if the 5th wave is complete, it's always one of those things that you find out after the event, but for the short term the risk/reward favours being long.
2.27 The market is moving sideways but my longs are performing reasonably well with IPL up 9 at 379, LYC up 4 at 220 and OZL up 1 at 144.5. Asian markets are positive across the board while US futures and gold are also up.
4.14 Down a bit, up a bit...last at 4694, plus 10.
I sold out half of my IPL at 381 average since I see it as a fast reversal trade. If it gets near the last swing high at 393, I'm out of the rest.
And here's a short trade in AWC. Taking the view that this has had an a-b-c rally to a lower high at 238, this could be heading back to the March lows as while copper is firming, aluminium is going the other way. Short at 229.
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