V shape
12.37 pm The index is 0.5% higher and continuing the V shaped recovery from the sell off early this month. My positions are doing pretty well with Iluka upgraded and 24 cents higher while the ORG short is not up much. QAN reached 582 early but is now down 4 at 569. I think it's a pause rather than a peak and will hold for longer.
I have a new long in Orocobre. It reported on Friday and there was disappointment resulting in a slight fall. Analysts seem to think the problems were minor and the stock has pushed higher today. I bought some on a break of Friday's high at around 669 and the stock has kept pushing, up 33 to 688. I'd like to add more but will wait till later.
I'm not quite sure what to make of it but my dominant scenario is that it's has made a very strong base and this could be the start of a third wave which takes it to 750.
In the small caps, Bubs has run hard and I sold out the extra tranche at 93 and 99. It's now at 101.
Synlait Milk is a supplier to A2M and was sold off after A2's announcement of a supply deal with Fonterra. However, A2M needs more supply and confirmed that Synlait would not lose any volume. It could be a chance to get into the laggard of a very strong sector. I bought some at 646 a few days ago but it was a very small amount and I'm thinking of adding more because a break of 660 might indicate a short push to 700 or higher.
2.36 pm Iluka reports tomorrow and I'm loathe to hold much in a reporting company because however good a chart looks, even a minor profit miss can see big stock price falls. So, I've sold a third at 1014 and I'll probably do some more before the close. I like Lynas too but that's another stock reporting tomorrow. It's pushing the top of narrow trading range and a similar leg up to the recent one would push it to 230.
4.24 pm The index closed comprehensively through 6000 as it rose 42 points to 6042. I sold another tranche of Iluka at 1019 - slightly reluctantly - due to reporting and added a short in TWE along with a couple of short term momentum longs in CWN and WEB.
TWE has had a great run and shows no sign of a serious top but the aggressive buyback is over and the stock is rolling over so it's a reasonable hedge for a day or so.
I have a new long in Orocobre. It reported on Friday and there was disappointment resulting in a slight fall. Analysts seem to think the problems were minor and the stock has pushed higher today. I bought some on a break of Friday's high at around 669 and the stock has kept pushing, up 33 to 688. I'd like to add more but will wait till later.
I'm not quite sure what to make of it but my dominant scenario is that it's has made a very strong base and this could be the start of a third wave which takes it to 750.
Synlait Milk is a supplier to A2M and was sold off after A2's announcement of a supply deal with Fonterra. However, A2M needs more supply and confirmed that Synlait would not lose any volume. It could be a chance to get into the laggard of a very strong sector. I bought some at 646 a few days ago but it was a very small amount and I'm thinking of adding more because a break of 660 might indicate a short push to 700 or higher.
2.36 pm Iluka reports tomorrow and I'm loathe to hold much in a reporting company because however good a chart looks, even a minor profit miss can see big stock price falls. So, I've sold a third at 1014 and I'll probably do some more before the close. I like Lynas too but that's another stock reporting tomorrow. It's pushing the top of narrow trading range and a similar leg up to the recent one would push it to 230.
4.24 pm The index closed comprehensively through 6000 as it rose 42 points to 6042. I sold another tranche of Iluka at 1019 - slightly reluctantly - due to reporting and added a short in TWE along with a couple of short term momentum longs in CWN and WEB.
TWE has had a great run and shows no sign of a serious top but the aggressive buyback is over and the stock is rolling over so it's a reasonable hedge for a day or so.
Comments
Post a Comment