OIl rebalance after Santos knocks back Harbour Energy
12.50 pm An early rally faded and the market is down 13 points in an arm wrestle of a session as our relative underperformance encourages a few buyers to pick the level. The story of the day is Santos rejecting the takeover bid from Harbour Energy and subsequently falling 9%. There must have been an assumption it was a done deal and because of that there's some rebalancing as other oil stocks are sold off to readjust weightings.
My large cap book is underwater, not by much, but for the umpteenth day in a row so I'm gritting my teeth here. I'm actually net short as I sold some A2m and OSH which are helping. MIN is down at 1887 which doesn't change anything and my shorts in CAR and MFG haven't performed. CAR is flat but MFG is up 1.4%, more of an inside day though. Once again small caps are holding their own with KDR and TLG doing well.
2.41 pm No joy with the lithium stocks and I'm out of PLS and a small balance in Galaxy. Mineral Resources is down 37 to 1873 and it's playing out as I feared in that the best case is that this is an overlapping 5 wave correction that will resume the rally shortly. The trouble is that the chart always looks pretty terrible in these situations!
A2M is still falling, I bought some back at 946 and it has dipped further to 940.
4.22 pm I closed out the balance of the A2M at 930 and half the OSH short at 841. My longs performed badly but the shorts provided some cover. There was quite strong buying in the REIT sector today, a little counterintuitive but perhaps a sign that the fear of runaway US rates has calmed. I broadly agree, I think the 3 to 3.2% range will hold it for some time, perhaps till late in the year.
Link Market Services is still looking weak and is fading after a weak bounce. Short at 703.
The small caps did quite well with Senex Energy the only one under pressure as it fell a couple of cents on the sector weakness.
The index fell 9 points and while there was no strength in the selling the downwards grind is continuing.
My large cap book is underwater, not by much, but for the umpteenth day in a row so I'm gritting my teeth here. I'm actually net short as I sold some A2m and OSH which are helping. MIN is down at 1887 which doesn't change anything and my shorts in CAR and MFG haven't performed. CAR is flat but MFG is up 1.4%, more of an inside day though. Once again small caps are holding their own with KDR and TLG doing well.
2.41 pm No joy with the lithium stocks and I'm out of PLS and a small balance in Galaxy. Mineral Resources is down 37 to 1873 and it's playing out as I feared in that the best case is that this is an overlapping 5 wave correction that will resume the rally shortly. The trouble is that the chart always looks pretty terrible in these situations!
4.22 pm I closed out the balance of the A2M at 930 and half the OSH short at 841. My longs performed badly but the shorts provided some cover. There was quite strong buying in the REIT sector today, a little counterintuitive but perhaps a sign that the fear of runaway US rates has calmed. I broadly agree, I think the 3 to 3.2% range will hold it for some time, perhaps till late in the year.
Link Market Services is still looking weak and is fading after a weak bounce. Short at 703.
The index fell 9 points and while there was no strength in the selling the downwards grind is continuing.
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