Monday, February 15, 2010

Wedding Crashers

Went to a wedding on the weekend, had another valentine-less year and ate pizza whilst reading market reports. SCINTILLATING STUFF.

The markets stabilised last week, putting on 1.5% - the overall sentiment is mixed, with most people waiting for the market to take the upturn before adding any significant long positions.

The asx has hovered around it's 200DMA and the employment reports didn't have the positive effects that you might expect - the retail sales in the US didn't help markets either. The overall uncertainty over the Greece sovereign risk is the key issue that will probably drive markets over the coming week.

The Oil prices were rising - this was partly due to the serious blizzards in the US as well as the US dollar weakening against the AUD and gold bouncing accordingly.
The EURO still remains biased to the downside, until something in Greece gets sorted.

I did want to play the oil bounce this week and I entered the (TRADE 223) STO position with the greatest exposure in one trade to date - I hedged this position with a (trade 224) AGK short.
I shorted 600 AGK @ 13.97 and 630 long STO @ 13.11.

Attached you can see how the two stocks have diverged - and I'm playing the gap close.