Fighting the vortex
1.04 pm Back down 32 points as weak markets pretty much everywhere tug at the relatively buoyant Australian bourse. It's another rough day with QAN and TCL down more than 1% and Kogan lower by about 30 cents. One consolation is Resolute which is up 8 to 138.5. I bought this yesterday at 132 so paid more than I needed to since I normally prefer to buy on the close. It was a good breakout on production improvements and the stock has confirmed that move today.
Regarding the local index, I was hoping that yesterday's rally implied a pennant formation that might break higher but it looks as if it will be consolidating for a while longer now. I think it may be a relatively shallow pullback and although the pennant is just about holding, yesterday may have been the chance to push through and we didn't quite make it.
2.25 pm I sold out of LAA for a small net gain and took the loss in Kogan, selling at 674 versus an entry of 701. I'm left with BKL and RWC in the small cap book. Blackmore is lower without being significant at this point while Reliance has recovered from an early sell off to be up a couple at 546. It's looking increasingly bullish to me and trades around 560 should signal an acceleration. Maybe a day or so to go yet.
Atlas Arteria has been well supported since confirming the separation from Macquarie management. The stock has been surging then pulling back to the 50 day moving average and I've been looking for a buy point. I've decided today is it and have bought half at 646.5. The stock came back from an early spike to 660 on broker upgrades but is up 5 still at 646 and as the index begins to recover from the day's low, I'm increasingly confident that it will hold into the close.
4.17 pm I sold out TCL at 1205 for a 1.2% loss. I kept QAN and RSG and have the new long in ALX. Qantas had an inside day so there's no cut, while Resolute broke out and looks good now that it's entering an upgrade cycle. Reliance finished well and volume is good in this stock while Blackmores chopped up to be slightly stronger on the day.
The index recovered slightly with the US on holiday tonight.
Big losers were overseas fund managers, Platinum even more than MFG but down 8.9 and 6.4% respectively. Looks like a sudden recognition that performance is going to suffer while most world markets are under pressure. The stocks have been falling since January on a weekly scale.
2.25 pm I sold out of LAA for a small net gain and took the loss in Kogan, selling at 674 versus an entry of 701. I'm left with BKL and RWC in the small cap book. Blackmore is lower without being significant at this point while Reliance has recovered from an early sell off to be up a couple at 546. It's looking increasingly bullish to me and trades around 560 should signal an acceleration. Maybe a day or so to go yet.
4.17 pm I sold out TCL at 1205 for a 1.2% loss. I kept QAN and RSG and have the new long in ALX. Qantas had an inside day so there's no cut, while Resolute broke out and looks good now that it's entering an upgrade cycle. Reliance finished well and volume is good in this stock while Blackmores chopped up to be slightly stronger on the day.
The index recovered slightly with the US on holiday tonight.
Big losers were overseas fund managers, Platinum even more than MFG but down 8.9 and 6.4% respectively. Looks like a sudden recognition that performance is going to suffer while most world markets are under pressure. The stocks have been falling since January on a weekly scale.
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