The austerity measures were passed by the Greek parliament just before the open of the market this morning and helped to give the index an early lift. There has subsequently been much indecision and although the market is regaining support, it's the financials which are in favour while the risk assets are under pressure.
I sold out of the balance of PNA at 374 as it failed to find any lasting support and I also sold out of IPL as it stalled at Friday's intraday high of 340. My sale price was 338 and I held this position for longer than most of my trades but it did at least reward my patience as the entry level was about 310.
The stock price is still grinding up but I think it's stretched in the short term and I'm happy to be out.
Here's PNA. I wish I'd been a bit more aggressive when it hit my target on Friday but it has still been an excellent trade. Entry was 343.7 and exit was 377.5 so it was a 10% move in just under two weeks.
LNC has been under mild selling pressure and is down 3.5 at 137.5. I sold a third of my position at 140 but wanted to wait and see on the broad market before selling the rest.
I think the Asx 200 can have a surprise pop up to the top of the trend line in the next day or so but will struggle to get much further. For the last 6 weeks, I've been quite bullish and content to sit on longs. I think I'm going to be much quicker in and out until the situation resolves.
As a policy decision, I've decided to pay more attention to my intuition. I'm often staying in a position when I feel the time has come to exit because I'm determined to stick to my rules. I think these rules are ingrained enough to break them now and then.
2.05 The index is on the day's highs, up 23. I've been looking for a stock that might have a good pop up with the market and I've plumped for a long in AWC. I'm not convinced at this point in the day, it would need to finish strongly but so far it has reversed from a weak open and may have completed an a-b-c retracement. Plant closures are threatened so the corporate environment is cloudy but it doesn't seem to have affected analyst valuations very much.
3.25 The market has had a good run, up 39 at 4284 with a high at 4290. The resource stocks have been lagging but are beginning to catch up. AWC has hit 123 but is back down a fraction while LNC is down 3 at 138 but finding support after looking shaky for a while. The big mover has been FMG, up 26 at 550, but that has been a stock specific move based on a sizeable new investor.
Overall, I'm assuming that if there's further strength tomorrow then the resource stocks will run hard.
4.10 Since I'm short term bullish, I added another bounce back trade. This one in PDN at 179. There's a tight stop in the low 170s and I'm just looking for a move over a day or two. The stock closed at 180.
The index closed near the top of the range with a rise of 40 points to 4285.
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