Big gains in Europe were followed by reasonable ones in the States with resource stocks a standout. Despite flat Asian markets and yesterday's gains, the Asx 200 has continued higher with the rise standing at 1% at 2.43 pm. My positions are all long and have performed quite well with FMG up 10 at 467.
I bought some TOL towards yesterday's close at 440. I was looking for a confirmed buy signal with a break above 448 and a run up towards 480. My stop is at 428. The stock has obliged, trading at 446 with an intraday high of 449.
The Asx 200 index can also generate a breakout with a push through 4202, but so far there's a double top with the market trading at 4192.
A weak Euro is no longer a certainty to take resource prices lower and this decoupling is promising for the Aussie market. Gold is continuing to bounce back strongly and the correction looks like a textbook a-b-c retracement.
I've bought some IAU at 121. It's now trading at 118.5 so I should have waited for the close. However, it's an interesting chart with a reasonable rally in early December despite the weakness in gold. That push took it through resistance at 140. It fell back in the late December, small resource bloodbath but is showing signs of life. My stop is at 111 and it's a good little mover so 150-160 is possible if it can get going.
4.10 The index gave up some of the gains but closed well enough at 4188, a gain of 35. IAU finished at 119.5.
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