Sucked in

1.53 pm An excellent performance from the Aussie market with the loss now only 10 points. More buying in the banks has driven the recovery though resources are under pressure. I bought a couple of resources so haven't profited. I bought on a low percentage signal, hoping for a turn after a 3 wave correction rather than seeing enough evidence of it. I usually find it better to see a choppy 5 down in the C wave but instead I was sucked in by a little abc forming a 4th wave bounce and not a buy signal as I thought.
BHP, below, gives a clear picture. I'm looking at a correction from the mid May peak. The A wave took it down to 3200 followed by a B wave bounce to a lower high just above 3400. The C wave of the correction is almost complete but it too has subdivided into 5 and I went early. This morning may well have registered the low but I'd need to see more to buy it for an overnight hold.

3.34 pm I suspect the index will chop for a week or more and I'm completely out of form so reducing the number and size of positions. I'm pondering a long in NWH, up 7.5% today but on a decent upgrade and probably has more in it. The short is LNK which I closed yesterday as it wouldn't fall but it still looks weak and a second small range day at the breakdown level gives me a good second entry.