Weak leads from US markets on Friday night which were down 1.6%, saw initial softness on our market today. This was short lived as the market rallied in late morning trade only to turn around noon and sell off for the remainder of the session. As reporting season continues so does erratic price action. Short term volatility is beginning to contract yet is still at high levels and market risk is still high. Any decent setups are scarce so we will continue to manage the open positions we have whilst we wait for patterns to form and better setups to present – charts are, by and large, still messy. For the record, the XJO closed 0.5% lower, off 19.6 points at the close. Sectors were biased to the downside with Gold bucking the trend – up 1.7% after further record highs for the metal during the last session. Small caps stood up better than the large, the Small Ords closing down 0.2%.

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