Our market enjoyed early gains from the open, plateaued for much of the day before rallying into the close to finish on the highs for the day. The XJO climbed 2.6% higher, up 110.3 points for the day. All sectors except Gold were in the black at day’s end, the big movers being Property Trusts, Metals/Mining, Materials, Energy and Industrials – all more than 3% higher. This bounce sees some short trade setups starting to appear as stocks bounce to test broken support which may become resistance. Whilst we have posted a few tonight and more are potentially in the making over the next days, we cannot emphasise enough that they are aggressive trade setups – market risk is still very high and volatility is still rising and gap opens common place. There is absolutely nothing wrong with continuing to stand aside until conditions improve so please, aggressive traders only with those setups.

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1. Monday 1st August, 2011
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