Overkill in the banks
12.34 pm It seems like Thursday and Friday morning selling in the banks was overkill especially as distressed mortgages are at low and decreasing levels despite the issue of liar loans. So the banks have continued their recovery and that has lifted the market towards 6000 with the current level being 5984, a rise of 30 points.
My large cap overnight longs have been flat to down and I sold NUF early at 909 as it became clear that I was late to the party. Orica is the one I preferred but that hasn't done anything.
I was contemplating buying Pilbara on Friday and although I already have some in the small cap book, I bought more at 90.5 through the large cap book. This was on the breakout of a tight congestion following a leg up from 80 to 90. It's looking good at this stage with the last at 93 and the sector generally looking ready for a recovery. There was a news story that Galaxy is selling a minority stake to fund a project rather than raise capital and this makes sense as end users have been willing to pay more for shares than the market. Galaxy is in suspense pending the announcement but it's another boost to sentiment.
1.15 pm The medicinal cannabis sector is running hot today as Cann Group confirmed reports that they are talking with suitors but said no deal had been done. I've jumped on a moving train and bought some THC at 76 as it edged higher for two days and then pushed harder today. My thought is that there's no serious selling and any buying will give it a good push.
2.38 pm Galaxy confirmed the newspaper story about getting corporate partners for the Argentinian Sal de Vida project and the stock resumed trading about an hour ago. It looked like a potential break following a higher low so I went long at 299.5. That's looking like a good move at the moment as the stock has pushed on to 306 which confirms a daily buy signal and also a break of last week's high.
4.33 pm I sold out of BXB and ORI by the close with none of last night's longs doing much today. New positions in GXY and PLS did well and I added a third position in Mirvac Group at the match price of 224. It's probably still a correction from a weekly point of view but there's a nice range break on the daily and a good move on good volume today. Similar stocks I track like SCG, SGP and WFD have been rallying lately too so the sector is fine.
The small caps were flat overall. I bought HUB on Friday and it was an inside day today so I'm holding for another day. THC wobbled but held 76 at the close.
The market closed up 29 at 5983 and looks fine for now. ANZ reports tomorrow.
My large cap overnight longs have been flat to down and I sold NUF early at 909 as it became clear that I was late to the party. Orica is the one I preferred but that hasn't done anything.
I was contemplating buying Pilbara on Friday and although I already have some in the small cap book, I bought more at 90.5 through the large cap book. This was on the breakout of a tight congestion following a leg up from 80 to 90. It's looking good at this stage with the last at 93 and the sector generally looking ready for a recovery. There was a news story that Galaxy is selling a minority stake to fund a project rather than raise capital and this makes sense as end users have been willing to pay more for shares than the market. Galaxy is in suspense pending the announcement but it's another boost to sentiment.
1.15 pm The medicinal cannabis sector is running hot today as Cann Group confirmed reports that they are talking with suitors but said no deal had been done. I've jumped on a moving train and bought some THC at 76 as it edged higher for two days and then pushed harder today. My thought is that there's no serious selling and any buying will give it a good push.
2.38 pm Galaxy confirmed the newspaper story about getting corporate partners for the Argentinian Sal de Vida project and the stock resumed trading about an hour ago. It looked like a potential break following a higher low so I went long at 299.5. That's looking like a good move at the moment as the stock has pushed on to 306 which confirms a daily buy signal and also a break of last week's high.
4.33 pm I sold out of BXB and ORI by the close with none of last night's longs doing much today. New positions in GXY and PLS did well and I added a third position in Mirvac Group at the match price of 224. It's probably still a correction from a weekly point of view but there's a nice range break on the daily and a good move on good volume today. Similar stocks I track like SCG, SGP and WFD have been rallying lately too so the sector is fine.
The market closed up 29 at 5983 and looks fine for now. ANZ reports tomorrow.
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