Momentum the key
12.17 pm The strong keep getting stronger with our high fliers the best performers on another big day as the ASX 200 surges 1 percent to 6237. With that in mind, the best of my longs is Aristocrat which is up 4% to 3183 where I've sold half. Other than that, I took off my Santos for no change on the overnight as it stalls ahead of the OPEC meeting and sold the balance of TWE at 1880 which was my target and 2% or so above the close. I bought back the minor short in ALQ for a reasonable 1% above yesterday's close. The only real question mark is over James Hardie which is up 16 to 2215 but I was hoping for something a bit stronger as I thought they may be a beneficiary of the US dollar earnings thematic as our currency weakens in comparison.
The small cap book has done pretty well and IEL opened 4% higher at 1061 where I sold my balance and I've sold half the Speedcast at 613 with the rest on the offer at 620. The only misstep was DHG where I decided to cut at 323 as it found no support but it has rallied back to 327. Regardless, it's just not strong enough to allocate capital to and I already have a list of new potential longs in this portfolio which I'll try to whittle down as the day goes on. The list is APT, BVS, HUB, NGI, NWL, OML, OVH, PAR, SDF and SM1 so it's extensive given I'll only take one or two. All these stocks are clearly strong.
On the theme of strong stocks, I debated Altium yesterday and it was a nice set up as a breakout was grinding higher without quite taking off which allowed an opportunity to buy without chasing the price.
2.42 pm Both the major listed international fund managers are charting very well. Magellan has generally been overweight the FAANG stocks and could be playing catch up as the NASDAQ soars higher.
Platinum's portfolio is more diverse but their financial year performance is going to come in between 15 and 20% despite some recent Asian market weakness and focus may be turning to potential performance fees and the chance of inflows once planners see a second consecutive year of very strong performance.
3 pm I bought back the ALL I sold on the gap open for around the same price. The daily chart has a doji style gap higher which should follow through with another strong day. There's an example in this chart in May.
I'm leaning towards Afterpay and Synlait for the small cap book. Synlait is a textbook resumption after a flat correction. I almost bought it yesterday but it's still buyable, confirmed the signal but hasn't run too hard.
4.21 pm I bought QAN the other day and chopped it again as I felt it was silly to try to punt the break after such a long range. The reason for the trade was that it has been a very tight but gradually rising congestion suggesting a very strong underlying mood. Anyway, I thought I'd buy a decent break and we've seen it today so long at the closing price of 671.
I sold the JHX for a 1% gain and also sold STO and TWE today, replacing with longs in MFG and a smaller position in PTM to go along with the QAN while holding the ALL. I shorted a couple of relatively weak stocks in PRY and TLS.
The index held most of the gains and both books did well.
The small cap book has done pretty well and IEL opened 4% higher at 1061 where I sold my balance and I've sold half the Speedcast at 613 with the rest on the offer at 620. The only misstep was DHG where I decided to cut at 323 as it found no support but it has rallied back to 327. Regardless, it's just not strong enough to allocate capital to and I already have a list of new potential longs in this portfolio which I'll try to whittle down as the day goes on. The list is APT, BVS, HUB, NGI, NWL, OML, OVH, PAR, SDF and SM1 so it's extensive given I'll only take one or two. All these stocks are clearly strong.
On the theme of strong stocks, I debated Altium yesterday and it was a nice set up as a breakout was grinding higher without quite taking off which allowed an opportunity to buy without chasing the price.
2.42 pm Both the major listed international fund managers are charting very well. Magellan has generally been overweight the FAANG stocks and could be playing catch up as the NASDAQ soars higher.
3 pm I bought back the ALL I sold on the gap open for around the same price. The daily chart has a doji style gap higher which should follow through with another strong day. There's an example in this chart in May.
4.21 pm I bought QAN the other day and chopped it again as I felt it was silly to try to punt the break after such a long range. The reason for the trade was that it has been a very tight but gradually rising congestion suggesting a very strong underlying mood. Anyway, I thought I'd buy a decent break and we've seen it today so long at the closing price of 671.
The index held most of the gains and both books did well.
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