Spring in my step

I have renewed energy now that I have a clear goal, which I've broken down into short term, medium term and long term components. The market has renewed energy too as the fear of the last few weeks has eased and recovery continues. I had a bad feeling about that AWC short on the close and did buy back half but I've stuffed up this morning's trade as I watched it sail past the stop level. It's just easing off now but is still up over 7%. It goes ex-dividend tomorrow which may explain the outperformance relative to the sector and to Alcoa in the US which failed to follow the market up. Locally, analysts are unenthusiastic about the stock and I'm contemplating holding the short now I've let it go so far.

I probably won't though, it looks like an a-b-c recovery that's shortable but if it gets through 200 then there's another 10 cents before the next resistance. I can always have another go on weakness.

OST is a stock that I've periodically tried to buy, looking for reversal rallies, and it hasn't been a good strategy. I've done it again today but it's a day trade only. It reports tomorrow and since it is actually quite cheap, there's a chance of a squeeze up today. It looks to have already started. I'm long at a tick over 142.5. Here's a 30 minute chart.

12.54 The market topped out at 4258 with a fractionally lower high. It's up 75 now at 4247. AWC has eased to 192 and OST is hanging in there at 143. My other position is NAB August 2350 puts which have been crunched due to a combination of time decay and another push towards 2350 where it seems to stall. I think the upside is limited but the stock is probably going to take a little while to turn around so I'm going to sell these out later today.

With the index getting towards 4300, I suspect further gains are going to be limited but there's also value around and with fear easing, the index might just grind and slow. I'm taking an extended holiday soon and with stuff to do, I'm going to stick to day trading until then.

2.31 Out of OST at 142 for a fractional loss, I was looking for a squeeze and it hasn't happened. Also out of the NAB puts for 51. The market is in a very tight range and having another tilt at the high for the day.

2.42 The index is up 89 at 4262 and along with nearly 12 more points from CBA going ex dividend today it gives us a rise of 100.

3.14 I bought some AWC back at 191 but they've pushed up to marginal new highs. I'm prepared to wear the rest overnight.

3.46 And that's the ton up, no need for help from CBA's ex dividend points. Market is at 4273, nearing 4300 and there's no short term resistance until 4421.

 

3.57 Out of AWC at 197...there's no point fighting it and I can always have another go. I've been too quick to look to short the rally rather than wait for it to be obvious.

4.19 Up 111 at 4283 by the close.