Early majors disappoint
12.25 pm RIO and SUN, both top 20 stocks, have reported and disappointed the market which has put the index under early pressure. Support has come through and the loss has been trimmed to 8 points.
Star group, SGR, has come close to confirming a change in trend. I traded the first run up into the 530s before the stock fell just below 500, bottoming out a couple of days ago. Since then the Queensland government has overturned the plans of a rival casino and the stock has gained a second wind. A break of 540 would confirm a weekly trend change. I've been trading in and out from the long side over the last couple of days and may add a medium term position on a weekly break. Here's the longer term chart.
1.09 pm XRO is higher again but easing after early strength. I sold out a quarter of the long position at 2600. Here's the daily.
4.20 pm The index chopped around and closed lower by 9 points. EVN is a bit of a problem position. Most of the bullish action seemed to be in the secondary baby formula companies, BUB and WHA, which rallied hard on big volume. I'm tracking and trading A2M and BAL but didn't notice the action in those two until too late. There may be some intraday opportunities tomorrow but my main thought is that A2M could drive higher again and I want to be quick to get on board if that's the case.
The daily shows a high consolidation after a sharp leg up. It's congesting with a slight upward slant and I think it could well drive higher.
Star group, SGR, has come close to confirming a change in trend. I traded the first run up into the 530s before the stock fell just below 500, bottoming out a couple of days ago. Since then the Queensland government has overturned the plans of a rival casino and the stock has gained a second wind. A break of 540 would confirm a weekly trend change. I've been trading in and out from the long side over the last couple of days and may add a medium term position on a weekly break. Here's the longer term chart.
4.20 pm The index chopped around and closed lower by 9 points. EVN is a bit of a problem position. Most of the bullish action seemed to be in the secondary baby formula companies, BUB and WHA, which rallied hard on big volume. I'm tracking and trading A2M and BAL but didn't notice the action in those two until too late. There may be some intraday opportunities tomorrow but my main thought is that A2M could drive higher again and I want to be quick to get on board if that's the case.
The daily shows a high consolidation after a sharp leg up. It's congesting with a slight upward slant and I think it could well drive higher.
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