South 32 building a base
10.55 am The index is down 22 points as we approach the end of the first hour's trading. It's no great surprise as there's no real indication that the retracement has finished. I'm long across the large caps and always long in the small caps where shorting isn't easy and probably not advisable in current market conditions. With the small caps it's more the concertina thing where I'll increase the number of positions or decrease them as circumstances change.
The most interesting opportunity I'm seeing so far is in S32 where the retracement found support at a higher low around 320 and bounced 3% or so before stalling on Friday. There's more support today and I've gone long at 331.
Large cap longs from Friday in A2M and PTM are steady to up which is ok in a weak market while the small cap book is showing a gain too though these stocks are chopping around indicating a fair bit of indecision especially in the tech sector where GSW and UPD opened strong and have reversed. I got some GSW away at 234 and it's back to 221.
12.06 pm A2M has been crunched after peaking early, down to 701 now. I'm in two minds now as to whether to hold or cut.
The index has recovered a little, just down 10 now, but nothing is really happening for me so far today.
1.57 pm The market is recovering a little but the small caps have ground back. One that's gone my way is a new position in Praemium. Long at 64.5 and some good volume in the last 15 minutes has pushed it to 67. It's been trending well on good volume and the entry signal was the break of yesterday's high so a simple resumption after a minor pull back.
3.39 pm After the party of October and early November, I'm having to get used to the sort of tricky, choppy trading we experienced in the middle of the year. For example, I bought a couple of gold stocks early that were trending well and might have run today on a good overnight jump in the gold price but it turned out to be the top of the day. The rule of thumb in markets like this is to sell early on any bounce and if you want to buy something then wait till later in the day. I did the reverse today and it's cost me.
Regarding A2 Milk, it has an AGM tomorrow and the news is likely to be quite good so I'll keep most of these. Even if the stock is in retracement mode, it could well open higher.
4.33 pm I had a poor day which was mostly self inflicted because I'd been advising myself to be cautious and sell early and did the opposite. If I'd followed my own advice it would probably have been a break even or marginally profitable day.
I sold the PPS at 67 on the match and bought some Polynovo. PNV resumed its rally after a pennant correction on pretty good volume. Long at 36 as the stock was sold a little into the close.
I got out of two small resource longs that I'd lost confidence in, EUC and LIT. I'm happy to be clearing the decks in these marginal ones and there are one or two more that I might exit tomorrow.
The most interesting opportunity I'm seeing so far is in S32 where the retracement found support at a higher low around 320 and bounced 3% or so before stalling on Friday. There's more support today and I've gone long at 331.
12.06 pm A2M has been crunched after peaking early, down to 701 now. I'm in two minds now as to whether to hold or cut.
The index has recovered a little, just down 10 now, but nothing is really happening for me so far today.
1.57 pm The market is recovering a little but the small caps have ground back. One that's gone my way is a new position in Praemium. Long at 64.5 and some good volume in the last 15 minutes has pushed it to 67. It's been trending well on good volume and the entry signal was the break of yesterday's high so a simple resumption after a minor pull back.
3.39 pm After the party of October and early November, I'm having to get used to the sort of tricky, choppy trading we experienced in the middle of the year. For example, I bought a couple of gold stocks early that were trending well and might have run today on a good overnight jump in the gold price but it turned out to be the top of the day. The rule of thumb in markets like this is to sell early on any bounce and if you want to buy something then wait till later in the day. I did the reverse today and it's cost me.
Regarding A2 Milk, it has an AGM tomorrow and the news is likely to be quite good so I'll keep most of these. Even if the stock is in retracement mode, it could well open higher.
4.33 pm I had a poor day which was mostly self inflicted because I'd been advising myself to be cautious and sell early and did the opposite. If I'd followed my own advice it would probably have been a break even or marginally profitable day.
I sold the PPS at 67 on the match and bought some Polynovo. PNV resumed its rally after a pennant correction on pretty good volume. Long at 36 as the stock was sold a little into the close.
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