It's 3 pm and the Asx 200 has risen 9 points while Asian markets are rocketing and US overnight futures strong but the hesitation is probably due to the recent risk off mood which continued overnight.
The early action was weak but the low was 4225 and there's tons of support. I'm looking for a move up to the top of the range but there aren't many compelling buys. It was nice to come in with a clean slate though and I put on a couple of trades which, as it happens, hedge each other to an extent.
The first is a short in RSG. It's had a great run but there's a sell signal after a marginal new high. I'm short at 205 with a stop at 216, looking for a quick move down to 185ish.
Perseus is another junior gold miner. A good report today has seen the stock push through yesterday's low. I'm long at 284 with a stop 10 cents lower. If the correction is over, there's the prospect of a move above 300.
I was struggling to find longs that don't involve picking a low and I haven't really avoided that with my last new position. I've bought CGF at 433 with a stop at 420. My take is that the breakout came from the low 420s and has completed a 3rd wave and a fair chunk of a correction. The risk reward is reasonable with a 5th wave target above 460 and I'm avoiding the basic resources area which is under pressure. (Not that I'd be averse to a basic resources long if I could find one).
4.11 The market managed to eke out a gain of 11 points. Despite that, I'm confident that the choppy swing down is over and a rally is on the cards. The HSI is up 2% and the Japanese indices around 2.5%. Even the Kospi is up 1%.
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