After some good recent gains the market essentially took a breather today, trading in a tight range in choppy fashion on light volume. The XJO moved up 0.6% to close 26.6 points higher. Small caps fared better, the Small Ordinaries up 1.3% and the sector board was mostly positive with only Consumer Staples and Property Trusts posting negative results. From the discretionary trading perspective, some consolidation in the near future would be a good thing to give some patterns a chance to form and offer some low risk entries into stocks that are moving. With the market now over bought by our divergence indicator, this could certainly be on the cards, though not a given. Today’s price action was enough to see the ASX Systematic Portfolio switch back on so that now has pending entries for those that follow it. The Growth Portfolio just missed out on a guernsey, it swings back into action at 4308 basis the XAO – perhaps tomorrow!

Similar stock trading tips:

1. Tuesday 4th October, 2011
2. Monday 11th July, 2011
3. Thursday 11th August, 2011