We added some short positions last week in recognition that the market was more than likely going to slide lower. BHP and STO have both been the useful positions but today saw AWE come on home for us by dropping 9.4%, closing on its low. We exited the long ASX trade just after todays open to lock in a moderate gain, but I guess a gain on the long side is better than nothing in this environment.
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Chart of the ASX entry and exit:
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We have moved stops up on other long positions to protect profits.
We appear to be navigating this period of choppy trading well in the ASX, although the same can’t be said on the US side of the equation. On the ASX we’re now +7.7% since October 1st using 0.5% risk per trade, although we remain cautious as this sideways action is expected to last a little longer.
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