Is this a short term top?
11.48 pm There is a mood to pick the top in the market and after struggling to a marginal new high for this swing of 6147, the ASX 200 has fallen back to be down 14 at 6121. The index is definitely looking peaky and I'm regretting not shorting Telstra which I thought was a bit of a no brainer last night after the downgrade yesterday morning.
Here's the XJO daily chart.
Symptomatic of the weakness is BSL which is struggling to hold onto a small gain despite announcing quite a large profit upgrade this morning.
My large cap weeklies are pretty flat with A2M making a run at 1239 but falling short and FMG down a touch. Best performer has been my overnight long in Whitehaven which is up 3% at 502. I've sold out two thirds at about 498. The small caps are lower although I traded in and out of Afterpay following an announcement of a US expansion and that has limited the overall loss.
1.35 pm My large cap weekly positions were eventually caught in the downdraft and A2M and Fmg have fallen over 1.5%. Being a longer term hold, it's not significant at present so no decisions to be made. I'm out of the rest of the WHC at 498.
The small caps are also lower but not by much, it's mainly Doray which is down to 31.5, 32. The weekly is below and it looks like consolidation following last week's breakout. I expect to see it higher next week.
Otherwise, I've sold half of the SHV long at 660, up 8, as it recovered after an early fall. This is a short term position while the others are longer holds.
4.23 pm By the end of trade, the day's bar on the ASX 200 chart had formed a key reversal with a higher high early and a lower low by the close as it finished down 37 to 6098. Most stocks were sold down with the index including the high flying resources sector but I think the pain will be in the yield stocks in the next day or two because US bonds look as if they are going to test new highs as rates push through 3%. With that in mind, I've shorted SYD which has had a decent bounce in the last few weeks but looks to have rolled over with support down at 680. Short at the match price of 704.
Otherwise, my three large cap weekly longs were all lower but not dramatically so. The small caps held quite well with only DRM under pressure. In active small cap trade, I sold out of the last of the SHV at 652 and bought NWH again at 128.5 as it reverses from a minor low which I suspect was a large holder completing a sell order.
Here's the XJO daily chart.
Symptomatic of the weakness is BSL which is struggling to hold onto a small gain despite announcing quite a large profit upgrade this morning.
My large cap weeklies are pretty flat with A2M making a run at 1239 but falling short and FMG down a touch. Best performer has been my overnight long in Whitehaven which is up 3% at 502. I've sold out two thirds at about 498. The small caps are lower although I traded in and out of Afterpay following an announcement of a US expansion and that has limited the overall loss.
1.35 pm My large cap weekly positions were eventually caught in the downdraft and A2M and Fmg have fallen over 1.5%. Being a longer term hold, it's not significant at present so no decisions to be made. I'm out of the rest of the WHC at 498.
The small caps are also lower but not by much, it's mainly Doray which is down to 31.5, 32. The weekly is below and it looks like consolidation following last week's breakout. I expect to see it higher next week.
4.23 pm By the end of trade, the day's bar on the ASX 200 chart had formed a key reversal with a higher high early and a lower low by the close as it finished down 37 to 6098. Most stocks were sold down with the index including the high flying resources sector but I think the pain will be in the yield stocks in the next day or two because US bonds look as if they are going to test new highs as rates push through 3%. With that in mind, I've shorted SYD which has had a decent bounce in the last few weeks but looks to have rolled over with support down at 680. Short at the match price of 704.
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