Since the index couldn't get through that short term double top at 4202 yesterday, extremely flat leads meant there was unlikely to be another push today especially with the market awaiting a plethora of figures. At 2.30 pm, the index is down 0.4% which is what one would have expected after a couple of decent up days.
The first figures were Chinese inflation data; the CPI was a jot over, the PPI a touch under and the make up was reasonable with most of the strength coming from fruit and vegetable price rises which tend to be volatile. The HSI briefly fell then recovered and now has eased down a few points but the Asx 200 took the opportunity to sell off from the flat line. I don't expect much more will happen today with European bond auctions and potential rate cuts in the offing.
No new trades but one of the pre-Christmas longs is showing promise. I bought IPL at 311 on the basis of support just above 300, above the October lows and after a slow, choppy pullback typical of a correction coming to an end. I was, and still am, looking for a move back into the 340-360 range and there were two false starts with today the third attempt. US listed rough equivalent, Potash, is up 15% since mid December and the talk is that mining services is the place to be but IPL, which supplies explosives to the mining industry along with fertiliser to farmers, has ignored the zeitgeist. Anyway, I didn't cut which was a touch sloppy but the market action over that period seemed almost entirely meaningless. Trading is at 317 and a rise into the low 320s might get the bulls going.
The book is up overall and I sold out half of the BLD long at 393 (v 363) on a rough sort of target. The stock is benefitting from a recovery in stocks exposed to the US housing sector. I've been assuming that sort of theme would develop but it has taken a while. I'll try to do better than usual with my balance and run the position until appropriate rather than selling out due to vertigo.
4.10 There was a drop of 7 to 4181 by the close with all eyes on Europe.
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