The market has slowly gathered confidence after a quiet opening to be 33 points higher at 2.45 pm. It's a reasonable result for me because it's a risk on sort of day which doesn't suit my book. However, RMD is back to square after early weakness and my resource shorts in AGO, PDN and WSA peaked first thing and haven't moved much since; up 0.5-2%.
Employment figures came out at 11.30 showing full time employment to be steady with part time employment down a little. Along with renewed weakness in PMI numbers over the last week, it raises the prospect of a rate cut next month. The AUD is also softer and the net effect is mildly bullish. Banks have bounced back well and I might missed the opportunity to get back into some NAB calls.
Overall, minor support has held in the short term but I think it's a temporary reprieve. There might be another day or two of sideways to up but a new low was made yesterday and the next swing down will confirm a change in trend.
I've put on another risk off trade with a short in FMG at 546. The first leg down was pretty sharp and broke the previous low. I'm selling into the rally and my stop is at 583, above Monday's high, but I'll tighten it up as soon as possible.
4.12 The Asx 200 closed up 27 and my resource shorts squeezed up so it was a mildly disappointing day. We could be due another one like this tomorrow.
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