A strong night in terms of index movement but no fillip for us because it was fully anticipated. Base metals improved slightly and oil was up a couple of percent. With 40 minutes gone, the index has lost an early 5 point lift to be off 8.
I'm out of LYC at 234 because there was no carry through buying at the open. LNC has slipped 8 to 320 so I'm glad I sold a handful yesterday afternoon. I hope it's a shallow pullback like we had on Friday and Monday.
IPL is down 3 to 381, which is disappointing because US fertiliser stock, Potash, was up again and there's often a correlation. However, FMG is promising. The stock has traded as high as 661 which means the breakout looks on. Andrew "Twiggy" Forrest has stepped aside to be Chairman with the new CEO being the well respected Nev Power. It clears some of the uncertainty if Forrest is required by the courts to step down from day to day involvement in the company.
11.25 I'm out of KAR at 657 (v 652). Given that the index is stalling at the top of the trend channel, I only want to be in the 3 positions which I'm confident about. Here's the XJO chart.
11.32 Q1 GDP is in with a flood led drop of 1.2% which is better than expectations and the index has ticked up a few points. Chinese PMI figures are due out later today.
12.38 Chinese PMI for May is 51.6 v 51.8 so it continues the very gradual slowing of growth. It hasn't scared the horses; the market here and indices in China are consolidating after yesterday's gains. The Asx 200 is 3 points lower.
2.35 Back to the office to find the index up 12 but my stocks little changed. LNC has been sitting between 315 and 317 for a couple of hours and I've been tempted to buy some back but there's no real need yet. The 60 minute chart, below, has no obvious buy signal.
FMG has just come out of suspension following an announcement that the company is bringing forward its 155m tonne a year expansion to 2013, a year earlier than previously planned. The stock has gapped up to 667. Here's the 60 minute chart for FMG with the potential for some more acceleration, I think.
4.05 It looks like the index will match lower. The market has been slipping from the peak at 4725 to 4714, up 6, and now the SPI is selling off.
FMG had a surge and reached 677. I had some intraday longs which I sold at 670 (v 659) but I'm leaving the calls as I'm hoping that there are bigger fish to fry with those.
I'm starting to buy a couple of OST but I'm not sure if that's going to pan out so I'm going slowly and will either cut quickly or write about the trade tomorrow...most likely.
4.14 Not too bad, the index down 1 and FMG held quite well to finish up 17 at 669. LNC couldn't recover and slid further to close down 14 at 314.
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