Origin confirms

12.04 pm Most of the oil stocks did well yesterday but the one I liked the most was Origin. It has performed about the same as the sector but I like the potential for an acceleration. Looking at the action since early February, I see it as a first wave up, a correction into early March and then a longish third wave subdivided into 5 minor waves which topped out in mid May. Following that, I see it as a 4th wave correction into early June with a low at 928. My best guest for the fifth wave that I think we're now in is that this is also subdividing into a potential 5. If that's the case, the drive to just above 1000 on June 8th was the first of this final move. Then there has been a correction with the second breakout through 1000 yesterday signalling the start of the minor third. This should see decent acceleration perhaps to around 1060-1080. I bought at 998 on the close and added this morning at 1009 on confirmation that the breakout had some strength to it.

Afterpay has reversed lower quite sharply as NASDAQ weakness and end of financial year profit taking hits the stock. I don't mind it, only put on a small position and I'm prepared to cope with some volatility in the meantime. TTT has covered some of the loss as it is up a further 9 to 271 and I've also added some CAN at 315, selling half out at 325. One stock I like in the small caps is Blackmores. It's down today although it has bounced back quite hard. I think the stock has the potential to run up to 160 quite rapidly but I also think it may be quite a bit more than that if a major third is on it's way. Here's the daily.

I haven't shown the weekly chart but the six month correction from 17800 to 11642 was textbook and retraced the earlier rally from 9000 quite neatly. A similar large move up of about 90 dollars takes the stock to 20600ish. The daily structure is very positive with the recent wave up bigger than the first one. If it was a correction the moves would be slower and of more equal size. The pullback has been a standard abc and if the stock can rally through 14500 on decent volume, it's off and running.
Meanwhile, the index is actually up 10 despite US weakness as resource strength and some continued buying in the banks helps to counteract selling in some of the high flyers.

3.28 pm Worley Parsons is a service provider in the oil and gas sector and often charts as if it was a producer. It has been chopping around for a month and I was in two minds as to whether it was setting up for a lower high and a more complex correction or just building a base for another leg up. It looks increasingly like the latter and the chart shows a series of higher lows and choppy action that's beginning to resolve as momentum to the upside increases. I plan to buy some towards the close.

The index is now up 20 points and given that many of the REITs have gone ex dividend, the effective move is closer to 28. With the end of financial year tomorrow, I'm now thinking that the market can finish on a high above 6250. Chinese markets are having their first up day in a while and US futures are modestly higher.

4.18 pm The ASX 200 closed at 6215, holding the 20 point gain. I bought a little WOR and some BKL too.