Shell game
11.15 am Royal Dutch Shell sold about 11% of Woodside Petroleum in a block trade after market last night. The sale was about 4% below the last trade so that's put the brakes on our market today with the suggestion of some overseas selling also weighing on the index. The result sees the ASX 200 down 48 points to 5974, through the significant 6000 level.
I had very little in the large caps and with the help of an early buy in IPL the book is flat to up. IPL reported a decent profit but the main point was that while Australia was unsurprisingly flat, there were very strong gains in the US. The feedback so far is that upgrades are likely.
I'm not totally convinced about the upside potential because the stock is getting close to the top of an uptrend channel. However it's well bid and I'm happy to be long intraday.
It's not such a good story in the small cap book where the two positions I was most enthused about are solidly down. EUC is off 2.5 cents to 26 while MMJ is down 5 to 39.5 having coming out of a trading halt with an announcement of a modest deal which must have disappointed some longs.
1.13 pm Out of IPL at 399 and 400 as it hits resistance. The market overall is rebounding, 16 points off the lows but still off 49 points.
2.18 pm My road map yesterday was that 6000 would probably hold and the rally might peter out with a marginal new high between 6050 and 6100. That has changed now that the market is firmly down through 6000 and the new guesstimate is that the market might find support around 5900. Here's the current daily chart.
2.26 pm BGS is a rare bright spot in the small caps today. I bought at 41.5 as it broke through resistance and have sold half at 43 to get the average down.
3.36 pm There's definitely a lot of nervousness in the small caps, quite a few stocks I'm following have sold off sharply intraday after some mild early buying. The large caps are ok and I'm thinking that it's probably about time that the golds had a run. I've bought some Saracen at 145. The stock has built a base around 140 and is having the second attempt to bounce higher from there in the last few weeks. Resistance is just above 150.
4.22 pm Once again I've left the book fairly light. The large caps did well to make a small gain with a long book and a market down almost 1% while the small caps cost a bit but I've eased positions sizes lower again and I'm reasonably happy there.
I had very little in the large caps and with the help of an early buy in IPL the book is flat to up. IPL reported a decent profit but the main point was that while Australia was unsurprisingly flat, there were very strong gains in the US. The feedback so far is that upgrades are likely.
I'm not totally convinced about the upside potential because the stock is getting close to the top of an uptrend channel. However it's well bid and I'm happy to be long intraday.
1.13 pm Out of IPL at 399 and 400 as it hits resistance. The market overall is rebounding, 16 points off the lows but still off 49 points.
2.18 pm My road map yesterday was that 6000 would probably hold and the rally might peter out with a marginal new high between 6050 and 6100. That has changed now that the market is firmly down through 6000 and the new guesstimate is that the market might find support around 5900. Here's the current daily chart.
2.26 pm BGS is a rare bright spot in the small caps today. I bought at 41.5 as it broke through resistance and have sold half at 43 to get the average down.
3.36 pm There's definitely a lot of nervousness in the small caps, quite a few stocks I'm following have sold off sharply intraday after some mild early buying. The large caps are ok and I'm thinking that it's probably about time that the golds had a run. I've bought some Saracen at 145. The stock has built a base around 140 and is having the second attempt to bounce higher from there in the last few weeks. Resistance is just above 150.
4.22 pm Once again I've left the book fairly light. The large caps did well to make a small gain with a long book and a market down almost 1% while the small caps cost a bit but I've eased positions sizes lower again and I'm reasonably happy there.
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