Another good day for yield stocks
12.54 pm I missed a trick in the REIT sector yesterday as those stocks rallied on the increased odds of the Westfield takeover going through in a reverse of the situation that was happening with regards to Santos and the other oil and gas stocks. However, today more of the yield stocks are running because of a sizeable drop in the US 10 year bond rate to 3%. I've traded in and out of a couple of these stocks.
The overall market completed the short term pattern and fell early. It's now building a base and should push higher as the day goes on. It's currently down 5 at 6028 with the banks still the whipping boy but the selling in resources petering out. The short term downtrend in the ASX 200 is clear but we might get minor relief.
4.31 pm The index eventually climbed into the black but it left it late and the index closed up just 5 points. Still, I had a good day in the large caps finally and a marginal winning day in the smalls.
A new large cap long is TCL which I got at 1174. It fell to support at 1140 on the surge in rates but has recovered strongly and took off today. I'm hopeful of a quick move above 1200.
I shorted Magellan at 2347 on Tuesday and watched it retrace yesterday. The sell off resumed today and it fell back to 2328. I think tomorrow it may be a surge day to the downside.
I sold Kidman at 244 in the small caps as it stalled, entry was 238. A new long was Polynovo. It's been grinding higher for a month but was still in a long, narrow range. It broke that today and was at 57 before I noticed it. I got set there expecting a couple of days of mild regret as it congested sideways but it kept running and closed at 61. Volume was good today and has generally been solid for a while so that bodes well.
The overall market completed the short term pattern and fell early. It's now building a base and should push higher as the day goes on. It's currently down 5 at 6028 with the banks still the whipping boy but the selling in resources petering out. The short term downtrend in the ASX 200 is clear but we might get minor relief.
4.31 pm The index eventually climbed into the black but it left it late and the index closed up just 5 points. Still, I had a good day in the large caps finally and a marginal winning day in the smalls.
A new large cap long is TCL which I got at 1174. It fell to support at 1140 on the surge in rates but has recovered strongly and took off today. I'm hopeful of a quick move above 1200.
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