Obsessive compulsive disorder
11.29 am OCD has set in with market participants slamming on the brakes as soon as the index hits 5800. The justification is flimsy but there's no point fighting the tape.
The Australian dollar has fallen back about a cent from yesterday's highs and gold was steady overnight giving a nice lift in the Aussie dollar gold price but the sector itself is under pressure so my long in EVN has fallen back from 229 to 223. I'm not too worried about it as I think the weekly picture has changed.
Otherwise FMG is one of the few bright spots this morning rising 20 cents on a reappraisal of yesterday's quarterly report. It's the same story as OZL a few days earlier which fell on the day of the report and ran over 10% the following day. I'm not really sure if it's a trade I'd want to hold overnight but I bought on the open at 531 and it's looking reasonably good at 544.
1.30 pm The market is at 5700 points, down 1.4% and has had the first sign of support in the last hour.
One stock I've been holding for a couple of weeks in a longer term book is cloud accounting company, Xero. It's a classic high flat correction after a very nice run up from 1800. It should go again in much the same way as A2M did this week. Here's the chart.
4.22 pm Well, that was a ludicrous end to a ludicrous week in a ludicrous month which has one trading day to go. A loss of 20 points on the week but, adding up the trading range of each day, the market moved 260 points.
The key point for the Aussie market is that while the upcoming earnings season is expected to be good, the forward guidance could be quite muted. While you'd expect low interest rates, a high yielding market and a stretched housing market to support shares, the fear is that the US market is ready for a correction.
The result is that I'm focussing on intraday trading and longer term trading. My usual bread and butter business of looking for 2 or 3 day moves is hard work at the moment because by the time there's a signal, the market is ready to reverse.
The Australian dollar has fallen back about a cent from yesterday's highs and gold was steady overnight giving a nice lift in the Aussie dollar gold price but the sector itself is under pressure so my long in EVN has fallen back from 229 to 223. I'm not too worried about it as I think the weekly picture has changed.
Otherwise FMG is one of the few bright spots this morning rising 20 cents on a reappraisal of yesterday's quarterly report. It's the same story as OZL a few days earlier which fell on the day of the report and ran over 10% the following day. I'm not really sure if it's a trade I'd want to hold overnight but I bought on the open at 531 and it's looking reasonably good at 544.
1.30 pm The market is at 5700 points, down 1.4% and has had the first sign of support in the last hour.
One stock I've been holding for a couple of weeks in a longer term book is cloud accounting company, Xero. It's a classic high flat correction after a very nice run up from 1800. It should go again in much the same way as A2M did this week. Here's the chart.
The key point for the Aussie market is that while the upcoming earnings season is expected to be good, the forward guidance could be quite muted. While you'd expect low interest rates, a high yielding market and a stretched housing market to support shares, the fear is that the US market is ready for a correction.
The result is that I'm focussing on intraday trading and longer term trading. My usual bread and butter business of looking for 2 or 3 day moves is hard work at the moment because by the time there's a signal, the market is ready to reverse.
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