A sneaky rally today with the index recovering 21 points at 1.47 pm following very weak overnight leads. A fair bit was built in but the surprise would have been the poor result for the German 10 year bund auction. However, it's Thanksgiving in the US and the markets will be closed so there's some relief about that. The other driver seems to be the fall in the AUD which has recovered intraday to .974 USD but is still well down over the last week or two. One of my short positions, ALL, is bouncing and I assume it's currency related.
I'm not overly convinced by the action on a thin day so I'm using Tuesday's high to set my stop.
FMG fell to 443 in the first hour but is back at 463. I was expecting a rally above my entry levels today after the big fall yesterday but was thinking of an early bounce before a trend resumption. I think I need to be patient with this one now that there has been a reasonable sell signal.
PRU could be worth buying if it can hold up this afternoon. If I'm buying a potential reversal in a weak stock, I'd rather buy the second attempt (Tuesday was the first effort). I'm not super enthused but I think I should take the signal if it's there on the close rather than try to second guess it. Plus, it's weak in the short term but unlike much of the market it's clearly above the year's lows.
4.11 ALL finished quite strongly on good volume and I'm wondering whether I should have cut. The close was 231 and my stop is at breakeven, 235. It took the gloss off the day with FMG drifting back down and IAU also while TLS ticked between 312 and 313, finishing at the higher figure. No new trades.
The Asx 200 also drifted lower to finish down 7 points.
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