Trying to hold 5800
1.30 pm The ASX 200 is down 21 to 5808 as we reacted yesterday to overnight US futures suggesting a fall of half a percent or so and we react a second time to the actual fall of half a percent or so. The key driver is further weakness in banks and financials as the prospect of four rate rises in the US this year is back on the agenda. Significantly the US 10 year bond rate eased slightly overnight so although the trend in rates in the States is clearly higher, the consolidation around 2.8% has been going on for quite a while. For the last few years there has been a growing view that innovation and demographics would make it almost impossible to achieve inflation in first world economies. I subscribe to this view so although I can see that we're entering an inflationary cycle, I'm not convinced about the speed or severity of rate rises.
Trading wise, I'm down a bit on the large caps with CSR dropping 10 cents on no real news or volume while the small caps have compensated with Select Harvest doing particularly well as it receives upgrades. I had a small position there and bought more at 565. It's currently as 581 which is a clear breakout on the daily and weekly charts.
4.30 pm The other small cap that did well for me today was Synlait. It climbed 39 to 895 and I'm looking to sell out above 900 if it can get there tomorrow.
I also bought some Zip Money at the close. There seems to be some switching out of Afterpay which is under pressure after its amazing run. Z1P has better credit screening so this could be a bullish point of difference. Long at 90 at the match out as the stock made a buy signal having found support at the previous break after a pretty steep correction.
The large caps were a minor negative today. I sold half the Beach long at 139.5. It was a patient trade for me as I bought at 128, cut a few at 121 but held the rest for the bounce towards 140. The balance is running at a small profit so hopefully I'll get something out of it.
I bought Iluka towards the close at 1081. It's a strong stock, has resumed its rally on the weekly chart with a break of the previous week's high after a minor pullback and the daily chart shows a little break after a higher low.
The ASX 200 index recovered some of the losses as it finished down 13 at 5815. So a bit of a nothing day and while I feel the low is in, who knows how long the index needs to consolidate before the next advance.
Trading wise, I'm down a bit on the large caps with CSR dropping 10 cents on no real news or volume while the small caps have compensated with Select Harvest doing particularly well as it receives upgrades. I had a small position there and bought more at 565. It's currently as 581 which is a clear breakout on the daily and weekly charts.
4.30 pm The other small cap that did well for me today was Synlait. It climbed 39 to 895 and I'm looking to sell out above 900 if it can get there tomorrow.
I also bought some Zip Money at the close. There seems to be some switching out of Afterpay which is under pressure after its amazing run. Z1P has better credit screening so this could be a bullish point of difference. Long at 90 at the match out as the stock made a buy signal having found support at the previous break after a pretty steep correction.
I bought Iluka towards the close at 1081. It's a strong stock, has resumed its rally on the weekly chart with a break of the previous week's high after a minor pullback and the daily chart shows a little break after a higher low.
The ASX 200 index recovered some of the losses as it finished down 13 at 5815. So a bit of a nothing day and while I feel the low is in, who knows how long the index needs to consolidate before the next advance.
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