My only holding IPL will probably get hammered big time as Ag stocks in the US get punished.
This certainly isn’t a pretty market. The anticipated bounce on Monday/Tuesday occurred, but it was only an intraday rally. So far it appears that the XAO can only go in one direction: straight down. The US is pretty much in a confirmed bear market according to Colin Twiggs at incrediblecharts.com, but the All Ordinaries will not be in a confirmed bear market until the August lows are convincingly broken. Nonetheless, with the market trading below its 200ema, it is clearly in bearish territory at the moment. I think the Aussie market is still in the process of forming a major trading range like the one which occurred from 1999 to 2001 – but that could all change. With a horrendous open on Friday, could we be in the process of a washout that can trigger a more sustainable bounce in the Aussie bourse?
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Sorry for the lack of updates, as I have been busy. I’ll try to get some charts up on the weekend.
Update: BHP suffers a huge gap down. Smells like panic. Dipping my toe in here at 34.5 in anticipation of a bounce later on. I’ve got plenty of cash to waste here. Also bought some STW (SP200 etf) to capitalise on a potential bounce……

Update @ close: Market rallies off morning lows. The position in BHP established this morning is up, as is my newly established position in STW. Let’s hope the market has a little more legs to stand on for this rally. I already sold half of BHP for a quick 2% in case this rally flops on Monday. I’m holding STW for the coming days though. Too scared to buy anything else as I’m not sure what will participate in the bounce and what will be left out. IPL is also falling a lot less than I expected, which is a good thing I guess – I expected a test of 102-104 today. Sidenote, I’m up for the year so far in my equity account, in part due to my IPL holding and my vast reserves of cash raised last year. Unfortunately, I have done nothing with my fx account. If I put on my goggles of hindsight, I would have made tons of imaginary money by shorting GBP/JPY.