Surprise move
11.58 am It's an action packed end to the month with a surprise announcement of an inquiry into the banks driving the market lower. The ASX 200 is down 33 having almost halved the early losses. There's a school of thought that the banks see a royal commission as inevitable and are pushing to get it over and done with while there's a more sympathetic government in situ.
It's a flat to mildly down start for me as I'm running long in the large caps and the small cap book is long only. I think this is the start of a B wave down so the correction will continue for a while. My aim is to get out of most things by the close of trading although I think there are some opportunities in counter cyclical stocks like HVN, JBH and QAN. US retailers and airlines were well bid last night in a rotation out of tech leaders and I'm hoping that theme will play out here. I've bought some QAN at 566 although I can't really justify it as an overnight hold at this point.
The small caps are generally a tad weaker and as I'm taking tomorrow off, I'm trying to avoid buying anything fresh.
AWE announced they'd received a cash bid of 71 cents a share versus a last sale price of 55 from Chinese interests. They haven't engaged as they feel the bid is inadequate but the stock is up 10 to 65. I've been a stale long in BPT for a couple of weeks and it's showing a little strength on this news. I'm hoping the correction is over. There's no sign of a higher low but it's a strong and impulsive up move with a choppy pullback so no real danger here in my opinion.
2.08 pm The index is down 41 now and I feel that there's little upside over the next week or so. As I'm away tomorrow, I'm trying to exit positions. The XJO chart is looking pretty average now, see below.
One I got out of was QAN as it appeared to be rolling over, prematurely sadly as it has kicked again to be one of the few highlights today. One of those days. I'm also selling most of the small cap positions that are looking precarious.
4.35 pm I got out of anything that looked precarious and just have some HVN and a couple of small remnant positions that I'm looking to exit on the open tomorrow before I leave. The index fell 41 and the resources are generally under pressure with defensives bid in a small way.
I focussed on getting out of resource longs in the small cap book even though it was costly as I had a few. I left a couple that seemed to be running their own race and didn't worry too much about the non resource longs. One new addition was Clover at 67. It's been well bid lately and finished strongly at 71.5. Long at 67.
It's a flat to mildly down start for me as I'm running long in the large caps and the small cap book is long only. I think this is the start of a B wave down so the correction will continue for a while. My aim is to get out of most things by the close of trading although I think there are some opportunities in counter cyclical stocks like HVN, JBH and QAN. US retailers and airlines were well bid last night in a rotation out of tech leaders and I'm hoping that theme will play out here. I've bought some QAN at 566 although I can't really justify it as an overnight hold at this point.
The small caps are generally a tad weaker and as I'm taking tomorrow off, I'm trying to avoid buying anything fresh.
AWE announced they'd received a cash bid of 71 cents a share versus a last sale price of 55 from Chinese interests. They haven't engaged as they feel the bid is inadequate but the stock is up 10 to 65. I've been a stale long in BPT for a couple of weeks and it's showing a little strength on this news. I'm hoping the correction is over. There's no sign of a higher low but it's a strong and impulsive up move with a choppy pullback so no real danger here in my opinion.
2.08 pm The index is down 41 now and I feel that there's little upside over the next week or so. As I'm away tomorrow, I'm trying to exit positions. The XJO chart is looking pretty average now, see below.
4.35 pm I got out of anything that looked precarious and just have some HVN and a couple of small remnant positions that I'm looking to exit on the open tomorrow before I leave. The index fell 41 and the resources are generally under pressure with defensives bid in a small way.
I focussed on getting out of resource longs in the small cap book even though it was costly as I had a few. I left a couple that seemed to be running their own race and didn't worry too much about the non resource longs. One new addition was Clover at 67. It's been well bid lately and finished strongly at 71.5. Long at 67.
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