ASX Morning call 30th August

Plan yesterday was to sell the prev day high. It ground up there in the first hour and flapped around as the market started consuming stop losses. I exited knowing that stop loss buying will most likely get up to R3 and filled my boots after close for a tidy profit. One of the tricks closing on the highs is to wait for the auction and spread widening to take out more short stops and sell a spike. I did notice some really nasty gaps in trade at yesterdays high as the depth was widening 4-5 points, taking stops and coming back down to find a buyer. I have not seen that for a while.

I dont know what to do today. This is the market structure I dont like. The H&S I was watching form has now formed a double top and this next top could form another head. Probably set a new range today and see what it looks like tomorrow. I would rather stick pins in my eyes then long the ASX. 

I looks like the extreme gap will close at 6350. If you want to long then buying around that area will be good need a big stop below yesterdays low. If the extreme gap does not fill then price should be extremely bullish and will be a good target for longer term shorts higher. I am going to wait for today's trade to complete plot some ranges and put a fib on tomorrow morning see where I can sell this.     

Thursdays can be volatile so a spike up to 6419 in the first 10 mins of trade or pre-open will be a sell. I am not going to entertain any sells if I see a stop loss buying grind during the day maybe at the close if its like yesterday.