Minimum requirement
11.51 am Another big fall on overseas markets with a late plunge around 4% in US indices has knocked us down again so I'm glad that I held off any potential longs yesterday. I'm much more interested now that the market has made another minor new low today with the ASX 200 touching 5787 and presently down 86 at 5804. Having an Eliot wave bent in the way I look at the market, I like to see a 5th wave down after a minor congestion and that's what we've had this morning plus a second test of the support at 5800.
With that thought and with the idea that Aussie stocks are pretty fair value at these levels, I've bought some stocks early to good effect with MIN being the best performer. Another thought is that the liquidation would mostly have taken place earlier in the week so I couldn't see much chance of heavy falls today. Anyway, that's been right so far.
At present, I'm just day trading these positions and the intraday charts are suggesting the chance of a few more points to the upside.
1.37 pm Asian markets are still in panic mode - though they're starting to look very oversold - so the intraday rally has eased a little. US futures are taking their cue from that any flipping between lower and higher.
Even though our market has reached the minimum requirement for a completed correction, I'm thinking of going home square again as it's still a case of catching a falling knife.
I'm not doing anything in the small caps today, I've had a browse but there's enough to be working with in the larger stocks on an intraday basis.
3.30 pm The rally kicked again and took the index as high at 5847, a very mild loss given the lead. I thnk we're rolling over into the close so I'm getting out of my longs and still reluctant to hold overnight although I do think the market is now a buy on dip proposition.
REA reported well and rallied nicely intraday and reporting season is another reason to trade intraday. There are often quite good movements to go with.
3.44 pm I'd like to buy some South 32 soon as it's a strong stock, trending well and producing plenty of cash but my impression is that the sell off isn't quite complete. I was hoping to buy in the mid 350s this morning but the low was 362. My impression is this is a sort of pennant on the way down and I'd be wise to wait.
4.17 pm Not a bad day as the market rallied from a weak open and drifted slightly into the close.
At present, I'm just day trading these positions and the intraday charts are suggesting the chance of a few more points to the upside.
1.37 pm Asian markets are still in panic mode - though they're starting to look very oversold - so the intraday rally has eased a little. US futures are taking their cue from that any flipping between lower and higher.
Even though our market has reached the minimum requirement for a completed correction, I'm thinking of going home square again as it's still a case of catching a falling knife.
I'm not doing anything in the small caps today, I've had a browse but there's enough to be working with in the larger stocks on an intraday basis.
3.30 pm The rally kicked again and took the index as high at 5847, a very mild loss given the lead. I thnk we're rolling over into the close so I'm getting out of my longs and still reluctant to hold overnight although I do think the market is now a buy on dip proposition.
REA reported well and rallied nicely intraday and reporting season is another reason to trade intraday. There are often quite good movements to go with.
3.44 pm I'd like to buy some South 32 soon as it's a strong stock, trending well and producing plenty of cash but my impression is that the sell off isn't quite complete. I was hoping to buy in the mid 350s this morning but the low was 362. My impression is this is a sort of pennant on the way down and I'd be wise to wait.
4.17 pm Not a bad day as the market rallied from a weak open and drifted slightly into the close.
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