Lassitude
11.52 am The futures indicated a firmer start as they did yesterday which seemed a bit surprising given flat to slightly soft leads and our general malaise. Sure enough, the index sold off from a small early gain and has been as low as 5649. However, I get the impression that the market doesn't have the energy to sell off further given Trump's tax speech tonight and there are tentative signs of an intraday low. It's possible therefore that we just float back up to square later.
My oil stocks are holding ok but haven't rallied further while JBH is back down again. I'll cut that later today. QBE has done well on the downside with a fall of 27 to 994. The small caps are mixed but overall grinding lower with the market.
Fortescue is looking interesting for a short term long trade. It has driven lower on iron ore price weakness which turned around yesterday. Today's trade has the share price moving above the previous day's high for the first time since the stock made a lower high at 599 on Sep 13th. If there's a bid in the broad market it could push up to the 525-530 range this afternoon.
3.42 pm Boral is interesting. It's bounced back strongly from a higher low and the weekly trend is pretty solid. I can only surmise that there's an element of a squeeze here driven by the benefits coming to the company if there are US tax cuts thanks to the recent acquisition. I'm thinking of adding some on the close.
4.24 pm I decided to go for MIN on the long side. All the iron ore stocks seem set for a bounce and this stock, with it's lithium interests, is the strongest chart. Long at the closing price of 1615.
I added a couple of shorts as cover. One of them is SEK. It's chopping around but a recent rally failed at 1700 and a move down to 1600 seems possible.
The large cap book was ok today but the small caps disappointed, reversing last week's pattern.
My oil stocks are holding ok but haven't rallied further while JBH is back down again. I'll cut that later today. QBE has done well on the downside with a fall of 27 to 994. The small caps are mixed but overall grinding lower with the market.
Fortescue is looking interesting for a short term long trade. It has driven lower on iron ore price weakness which turned around yesterday. Today's trade has the share price moving above the previous day's high for the first time since the stock made a lower high at 599 on Sep 13th. If there's a bid in the broad market it could push up to the 525-530 range this afternoon.
3.42 pm Boral is interesting. It's bounced back strongly from a higher low and the weekly trend is pretty solid. I can only surmise that there's an element of a squeeze here driven by the benefits coming to the company if there are US tax cuts thanks to the recent acquisition. I'm thinking of adding some on the close.
4.24 pm I decided to go for MIN on the long side. All the iron ore stocks seem set for a bounce and this stock, with it's lithium interests, is the strongest chart. Long at the closing price of 1615.
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