NXT looks set to continue
12.37 pm Despite a late recovery in the US, the Aussie market shrugged off a slightly higher SPI to sell off further. It has been fairly minor and an intraday base seems to be forming.
I added some NXT earlier at 671 as there seemed to be some support. That's proven to be a good move because the stock has continued to bounce and is currently trading at 680. My strategy here is to assume that the minor correction is over and the stock will resume the rally that followed a good recent result. If that's the case, you could expect a move to a new high which suggest a short term target around 740-750....if the scenario is correct.
My other long position from Friday was Transurban and although the easing in rates - which I thought could be a tailwind - has stopped, the stock has recovered quite well from some early weakness to be down just 5 or 6 cents. I don't think this is a top trade but I do see the stock as reasonably good value and as having formed a potential base here.
Lynas reported this morning and it looked to me like a very good result. I'd been pretty keen to buy this before realising it was close to a reporting date and now the risk of a shocker has passed, I expect it to do quite well. I did buy some at 220 though I'm slightly hesitant because after an early surge there seems to be a certain amount of indigestion. The business is turning around nicely but it's also not cheap so it's hard to gauge how much of this result is already in the price. There is a break of recent resistance and no sense of a completed 5 wave pattern so I'm hoping that the stock will gather strength.
If it can hold the gains and preferably show some closing strength, then I'll keep this overnight.
2.08 pm The market kicked lower again after an attempt at holding from the morning's base. The intraday low on the ASX 200 is 5890 and it's currently sitting down 37 at 5892. I'm thinking that 5900 might be a general support so I'm wondering whether some buying will kick in. Asian markets are down by similar amounts to us and US futures are about a third of a percent down. It's an adjustment to the uncertainty of a potential tariff war and nobody has any idea how it will develop - it's usually short first and ask questions later with this sort of thing.
What I like about the XJO's bounce from the early February sell off was that it shot straight through potential resistance at 6000. This suggests to me that the index will make a higher low but whether that's 5900 or just above 5800 is another thing.
The drop in the market meant that NXT and TCL drifted lower, though nothing significant for now, but fortunately Lynas has held the 220 level which is encouraging for a decent finish.
The small cap positions I have are a little lower although Afterpay is actually edging higher now and I'll add to the position on the close if it can hold these levels.
4.18 pm The index didn't really make a serious attempt to recover 5900 although it did close slightly better at 5895. I sold a third of the LYC out at 220 as it finished reasonably well but not conclusively so. NXT faded to unchanged on the day with a close at 667. A little disappointing but clearly better than the market and the early strength might be a pointer to where it can go if the broader market sell off has a breather. TCL was down 10 and broke yesterday's low after having been solid last Wednesday to Friday. However, it's holding above the recent swing low and that's my pointer for now.
APT closed a tick below the day's high at 736 and I added some there. BUB slipped 1.5 to 81.5 and looks vulnerable having gone sideways following the sell down post the result.
I added some NXT earlier at 671 as there seemed to be some support. That's proven to be a good move because the stock has continued to bounce and is currently trading at 680. My strategy here is to assume that the minor correction is over and the stock will resume the rally that followed a good recent result. If that's the case, you could expect a move to a new high which suggest a short term target around 740-750....if the scenario is correct.
Lynas reported this morning and it looked to me like a very good result. I'd been pretty keen to buy this before realising it was close to a reporting date and now the risk of a shocker has passed, I expect it to do quite well. I did buy some at 220 though I'm slightly hesitant because after an early surge there seems to be a certain amount of indigestion. The business is turning around nicely but it's also not cheap so it's hard to gauge how much of this result is already in the price. There is a break of recent resistance and no sense of a completed 5 wave pattern so I'm hoping that the stock will gather strength.
If it can hold the gains and preferably show some closing strength, then I'll keep this overnight.
2.08 pm The market kicked lower again after an attempt at holding from the morning's base. The intraday low on the ASX 200 is 5890 and it's currently sitting down 37 at 5892. I'm thinking that 5900 might be a general support so I'm wondering whether some buying will kick in. Asian markets are down by similar amounts to us and US futures are about a third of a percent down. It's an adjustment to the uncertainty of a potential tariff war and nobody has any idea how it will develop - it's usually short first and ask questions later with this sort of thing.
What I like about the XJO's bounce from the early February sell off was that it shot straight through potential resistance at 6000. This suggests to me that the index will make a higher low but whether that's 5900 or just above 5800 is another thing.
The small cap positions I have are a little lower although Afterpay is actually edging higher now and I'll add to the position on the close if it can hold these levels.
APT closed a tick below the day's high at 736 and I added some there. BUB slipped 1.5 to 81.5 and looks vulnerable having gone sideways following the sell down post the result.
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