A mildly positive lead has meant little because it was pre-holiday trading and today is seeing a pullback after the good recovery on Thursday and Friday. Down 15 after an hour.
I've sold half of the AWE position at 141.5 (v 137) as it's an a-b-c bounce and remains in a downtrend. The stock looked ready to fade away but is perking up slightly. The drilling program is underway but is due to take 37 days so it's not a high conviction trade for me.
PDN is not dissimilar to the AWE chart and it has sold off after hitting intraday resistance at 328 following small rises overnight in the Toronto listed shares. I've only got a small position but missed my chance to stop out around 325, 326 because I wanted to give it a chance to break 328. Now it's at 319 so I'm thinking of tipping the balance out on a retracement.
I'm writing about these two unexciting trades because they're the sort of bread and butter trades that I've found to be worth taking while you're waiting for the great ones to come along. Usually they pan out to be simple c waves that offer a few cents profit if the entry and exits are right. Obviously, it's better to go with the primary trend and ignore these but I tend to take them when I think the trend might have turned. In those cases, the moves can be quite hard and fast as you benefit from the element of surprise...short squeezes, unexpected good news etc.
11.44 The market is falling slowly, down 22, as the selling/shorting of the major banks resumes. ANZ is the best performer with a fall of 1%. Resources are largely unscathed but I guess the general weakness in the futures contract must derive some arbitrage selling.
I still have 15k of LYC which are back to my entry level of 222. This is slightly surprising but unlike AWE and PDN, the stock is not in a major downtrend and I've ignored the potential tight stop at 225 (break of Friday's low) in favour of the last swing low at 213. One of the reasons for this is that the stock is to be added to MSCI global standard indices as of the close of business tomorrow.
1.51 A slight improvement had us close to square but it's back down 14 now. I'm not doing any new trades today because on recent performance, the bounce might be near the end. I'm long 5 or 6 stocks and plan to be reasonably quick to cut on renewed weakness.
2.49 The FMG June 650 calls are under some selling pressure so they're down to 13.5 despite the stock being unchanged. I have 500 of them (or 50 in the old money), roughly a layout of $7500 for the upside on 50,000 FMG above 650. If the stock breaks lower, I should be able to short some and get a bit back on the downside, but for the moment I think the chart shows some promise.
4.10 We've got another day of this dreary trading coming up tomorrow with the US public off work for Memorial day. It's a bit of a strange habit really since we no longer react to US movements so predictably now that China is such a big influence. But it is what it is and the final result is a loss of 17 points to 4667.
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