It is all red ink on the sector board today, not even the Gold sector was spared despite more gains in the metal overnight. Energy and financial stocks bore the brunt and the small caps which had been holding up better than the large caps reversed that trend today, the Small Ords down 1.5%. The XJO seems to be in a hurry to test the next support level around 4200 and is now only about 76 points away. It closed 56.3 points lower for the session, losing a further 1.3% after selling off from around 11.30am right to the close, erasing some early morning gains. ILU brings up an exit signal for the Growth Portfolio today which will complete one of the portfolio’s better trades – up approximately 320% at today’s closing price after a buy signal in late August 2009. That portfolio has been showing one of its absolute strengths of late – taking defensive action and reverting to cash – better receiving some interest than losing capital in this market. Reporting season is upon us for ASX stocks, charts are messy and the market is deeply oversold and quiet volatile. If you are trading, respect your stops.

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