Base metal blues
11.59 am At this point, I think it's a sell off from overbought conditions but resources are under pressure as commodity markets used weaker Chinese import figures to hit base metal prices hard on Friday. The resources majors are all weaker which in turn has helped financials and industrials. It has cost me a little as I've been playing that theme.
The worst in that sector, or at least peripheral to it, is NWH which is down 4 at 115. However, it's pretty volatile at the moment and this isn't really a huge move in context. I also think the chart is strong implying more upside here.
The market cap is now above $400 million because of the capital raising and the stock price rise but the combined historical NPAT with the new acquisition should come in around $45 million so it's an undemanding valuation at a point when the cycle is returning to growth.
12.20 pm The market itself is quite strong today with a rise of 37 points taking the ASX 200 back through 5700 to 5710. PTM is ok, up a little to 603 while I'm looking to exit a position in IPL at 350 or 351 which is about square.
Lithium stocks and to a lesser extent, oil stocks are still performing and the last of my PLS long is close to dealing at 45. I got out of the balance of ORE too early at 413 and I'm long some SYR intraday at 354 which is the current price.
Of the small caps, UPD is the worst performer, down 8 to 132 but at this stage I'm unconcerned as it looks like a slightly more extended retracement than I expected. NAN is a small cap that I've been long for a while and it seems to be developing nicely as it moves away from previous resistance in the low 260s. I've added a little more at 271.
1.03 pm Out of the IPL for square at 350 and the last of the PLS at 45.
3.05 pm Well, I haven't added value today with the intraday changes. PLS is up to 48 while ORE is close to highs at 430 while SYR has eased from my entry price of 354 to 350. I think I'm a bit too trigger happy at the moment.
In terms of fresh opportunities, I like OSH and TAH.
Oil Search has made a higher low and higher high over the last few days for a buy signal and in a slightly longer time frame it's also looking like a higher low is in. Plus, the sector is pretty well bid.
Tabcorp is drawing closer to merging with Tatts and the realisation of that is helping the stock today after a slow pullback from a mid August bounce.
4.28 pm The market held the 5700 level, finishing up 40 at 5713.
PTM did ok on the day with a rise of 8 to 608..
The worst in that sector, or at least peripheral to it, is NWH which is down 4 at 115. However, it's pretty volatile at the moment and this isn't really a huge move in context. I also think the chart is strong implying more upside here.
The market cap is now above $400 million because of the capital raising and the stock price rise but the combined historical NPAT with the new acquisition should come in around $45 million so it's an undemanding valuation at a point when the cycle is returning to growth.
12.20 pm The market itself is quite strong today with a rise of 37 points taking the ASX 200 back through 5700 to 5710. PTM is ok, up a little to 603 while I'm looking to exit a position in IPL at 350 or 351 which is about square.
Lithium stocks and to a lesser extent, oil stocks are still performing and the last of my PLS long is close to dealing at 45. I got out of the balance of ORE too early at 413 and I'm long some SYR intraday at 354 which is the current price.
Of the small caps, UPD is the worst performer, down 8 to 132 but at this stage I'm unconcerned as it looks like a slightly more extended retracement than I expected. NAN is a small cap that I've been long for a while and it seems to be developing nicely as it moves away from previous resistance in the low 260s. I've added a little more at 271.
1.03 pm Out of the IPL for square at 350 and the last of the PLS at 45.
3.05 pm Well, I haven't added value today with the intraday changes. PLS is up to 48 while ORE is close to highs at 430 while SYR has eased from my entry price of 354 to 350. I think I'm a bit too trigger happy at the moment.
In terms of fresh opportunities, I like OSH and TAH.
Oil Search has made a higher low and higher high over the last few days for a buy signal and in a slightly longer time frame it's also looking like a higher low is in. Plus, the sector is pretty well bid.
Tabcorp is drawing closer to merging with Tatts and the realisation of that is helping the stock today after a slow pullback from a mid August bounce.
4.28 pm The market held the 5700 level, finishing up 40 at 5713.
PTM did ok on the day with a rise of 8 to 608..
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