I was squeezed in QBE yesterday as the stock rallied against my short position but today is a different picture as early gains in the US faded with a flat close. The stock tends to track US 10 year bonds and a flight to safety is possible as the Greek exit draws closer with a US bond rally implying a lower QBE price. There is also the prospect of legislative change affecting margins in the US. Apart from that, the chart suggests the potential for the stock price to accelerate its fall from here assuming that the sharp rally from January is complete and the lows could be retested. Price has again overlapped the March breakout level of 1230.
QBE is lower by over 3% while the broad market is down 1% with banks and other financials falling on a par with the index by and large.
The RSG short has performed, dropping 6 to 145 and I've added another gold short in SBM at 190.
4.19 The market failed to recover significantly intraday and drifted down to close just off the lows at 4067, a drop of 54 points or 1.3%. A good day for me and I'm predominantly short again having also added QRN and PNA. I covered bits and pieces of other sold positions, buying some CPU, IAG, ORG, RSG and WTF.
Here's the QRN chart. It's another continuation pattern and I'm short at 336.
PNA is similar although it has had some support in the last few days and may not have finished the retracement. I've done some at 282 and would consider selling more on a weak rally. Stop is at 300.
At the moment I'm tending to jump in and out of stocks while holding a core position so I bought back some CPU today at around 784 having shorted extra yesterday at 797. The stock looked very weak by the end of day and I would look to reshort on any minor bounce.
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