It's 10.45 am with the Asx 200 up 15 at 4196 having peaked soon after the open at 4202.8 which is half a point above the two recent highs. More people are starting to believe that the worst might have been seen in Europe, the US and China and that's reflected in further rises in resource stocks from beaten down levels in many cases. I'll be out of the office for much of the day but I think there's a good chance that we'll kick higher. The positives are successful European bond auctions overnight, the negatives are disappointing US economic data and their reporting season hitting full swing with expectations not high.
I've bought LNC at 121 because I'm going to be out and because it was a clear 1-2-3 breakout after a very big downtrend. I've been itching to buy some here but it seemed heavily offered. Perhaps a big seller has finished and the insiders are leaping in because the stock is 126.5 now.
If it's just a dead cat sort of rally then it might stall below 140 but if the stock is going to turn around over the next few months, this leg should get into the 140-160 range.
IPL is still under pressure and I'm hoping there's a similar situation to LNC with a big seller close to completion. It's down 2 at 313 with POT down a touch overnight but when POT has been running as much as 5% the response here has been for small rises. It would seem unlikely for the stock, which is operating well, to underperform for too long now that the tide has turned and there's decent support above 300 so I'll hang in for longer.
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