Friday, May 11, 2012

No repercussions yet

The local market is unconcerned about US futures having sold off after market because of JP Morgan's disclosure of a large hedging loss. Other US banks are also lower in late trade on the premise that trading conditions are tricky now. The upshot is that it has been another day of tinkering with my book without making major changes. I've day traded a handful of things and it hasn't amounted to much either way and the overnight positions are mildly positive.

I suspect this is a pause before further weakness but that there will be better buying opportunities after that. The chart, below, is of the Asx 200 index on a 60 minute scale. I see the rally as having faltered at short term resistance around 4300. If that's the case then this leg down might go to about 4220. It's at 4285 now.

chart

4.19 The market squeezed up till mid afternoon so it was another grinding day; there was a minor sell off after more soft Chinese numbers at 3.30 pm but the losses were limited to 10 points and the Asx 200 finished at 4285.

I did add a couple of extra shorts in stocks that look to be in retracement mode but in trivial size really. Enough to keep them on my radar so that if they start to resume their falls in earnest, I may be able to get on board.

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