Underperforming

The Asx 200 is up 12 but struggling to get a move on with the index up less than 1% since last Friday's close while Asian and European markets have been up 3 or 4% over that period. It disguises the outperformance of the resource stocks though and the overall tone seems pretty good. The XJO could stall here within the range of the last swing but it seems unlikely in context.

Intrepid has had a minor pullback and IPL is pretty flat so it has been a dull day for me. I've been thinking about buying AWE for a while. The stock had a big run between late September and mid November. There was a double top after the first retracement but the action since then has been very positive because the next retracement leg was very shallow despite carnage in the small resource sector at the time. The price is below those two highs but is popping out of a congestion. I'm using 123 as a stop because I plan to buy more than usual and don't want to get stopped out on choppy action.

I've just paid 137.5. The first leg has been pretty strong and something similar might take the stock to 180. The weekly, below, shows a prior range between around 150-180.

4.21 All over for another week with the attempt to sell the market down having failed. The final result was a rise of 25 points to 4240. Next week could see capitulation from the shorts.