Thursday, October 15, 2009

Trade 150 - Inflation Trades are Now In Session

The down breaksout 10,000 and the market seems to be going wild, although there are still some key risks on the breach of this level - that earnings will need to keep beating expectations and the US dollar will continue to fall, allowing the intermarket themese to continue, and the inflation trade will also be a trending theme.

http://www.thedailytradingreport.com/2009/10/15/the-inflation-trade-breaks-out-across-the-board-fxa-rji-djp-dbc-uso-gsg-tip-uup/

Basically, AUD, Oil, Gold are all set to outperform, and I will be trying to set up some positions within the week.

Trade 150 : More resource "Need more minerals"

Long positions today on SDL 8000@ 0.165 , which looks to have formed a clear short term bottom on the charts - my MAX stop on this trade is 13.5c and to play the 20c breakout (assuming market continues higher). I will liquidate the position earlier, if the market shows weakness, of it the price doesn't start to move higher in the next 6 sessions.

Trade 151/152 : First Pair Trade - Xmas shopping

To try and create some exposure to a potential retail recovery in this year's xmas shopping period, I've decided that David Jones (DJS) will do well, but to protect against market risk, I've decided to pair this stock with a stock that seems fairly well price - Harvey Norman. Intuitively I also feel David Jones will benefit from a xmas shopping period than Harvey Norman - and maybe other's in the stockmarket might feel the same way?

Long 300 DJS @ 5.82 / Short 365 HVN @ 4.78 (holding period, until xmas)