Quicksand
11.40 am The index is 7 points higher but getting dragged down from a positive start on the US tax proposals. The trading range looks likely to break in the coming days as the recent pattern is lower highs and lower lows towards the bottom of the range.
For the second time this week I've been whipsawed in a stock with FMG opening well at 526 and immediately reversing to now be down 3% at 503. I doubled up in the sector with MIN, down 14 at 1601, and the alternative long in BLD is up 10 to 683. So a poor start to the day.
GSW continues to rally and rally hard. It's up to 285 and I was too cautious here considering the standout chart.
Beach Petroleum has announced the acquisition of Origin Energy's Lattice gas assets for $1.55 billion. The fund raising is only a little over $300 million and on a 3 for 14 rights issue basis so I'm hopeful that the stock will surge when it reopens, probably on Monday. If you were underweight expecting to get set on a large issue then you've been disappointed. The assets themselves are immediately accretive for Beach.
3.28 pm It's been another dreary day as we wade through sludge. Metals and oils are generally lower, banks haven't really taken up the slack but there has been a bit of joy for sectors with US earnings.
I like the way Ansell is shaping up. It has been building a base and now starting to show signs of a trend change.
The other one I'm following is Macquarie. It has already rallied nicely from it's low earlier this month but after stalling around the August high it has kicked on today. A move to May's high around 9600 is not out of the question.
4.21 pm A very average day ended with a grudging rise of 6 points.
I got out of FMG and MIN and bought MQG on the close. I also have OSH which fell 5 on the day amid minor sector weakness. I like the breakout but probably should have cut today as it might slip to that support level around 700. Small caps were pretty flat. Overall the market remains under pressure as it consistently fails to rally on good news.
GSW continues to rally and rally hard. It's up to 285 and I was too cautious here considering the standout chart.
Beach Petroleum has announced the acquisition of Origin Energy's Lattice gas assets for $1.55 billion. The fund raising is only a little over $300 million and on a 3 for 14 rights issue basis so I'm hopeful that the stock will surge when it reopens, probably on Monday. If you were underweight expecting to get set on a large issue then you've been disappointed. The assets themselves are immediately accretive for Beach.
3.28 pm It's been another dreary day as we wade through sludge. Metals and oils are generally lower, banks haven't really taken up the slack but there has been a bit of joy for sectors with US earnings.
I like the way Ansell is shaping up. It has been building a base and now starting to show signs of a trend change.
4.21 pm A very average day ended with a grudging rise of 6 points.
I got out of FMG and MIN and bought MQG on the close. I also have OSH which fell 5 on the day amid minor sector weakness. I like the breakout but probably should have cut today as it might slip to that support level around 700. Small caps were pretty flat. Overall the market remains under pressure as it consistently fails to rally on good news.
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