US markets recovered sharply from a 1.5% sell off to close square but the boost was short lived for us and the index is down 11 points at 1.46 pm. Despite being short, I have no real winners. I fiddled around early, buying a few of the mining services stocks since I thought there could be another kick to the retracement. That didn't happen and I got out of those positions having lost a little in each. In the meantime, the short positions are flat to up slightly.
The data point for today was Chinese flash PMI numbers, the independent measure of growth and that showed continuing contraction in the Chinese economy. It's helped to take Asian markets down about 0.5% on average.
My inclination is to reduce position size since the momentum has slowed and I'm vulnerable to a second leg of a retracement. Here's the XJO daily.
2.04 It's option expiry too, so the majors are stuck around strike prices which limits the possibilities for the rest of the afternoon.
4.06 There's very little to be said for today, simply a market that's waiting on developments. I sold a few more June 2200 puts in WBC at 162 to reduce exposure and covered bits and pieces elsewhere.
4.10 The market has closed down 11, finishing the day at 4056.
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