Well done P and what a turn around and its about time. I shorted spi early in the night at 6850 and plan was to buy back at 6815 but the silly thing went to 6897 and FTSE & Dow were rocketting upward. I decided to try and sell the spi again at 6900 but miss by 3 points and got cheese off and went to bed but left my buy back order at 6815 which got hit and notice spi went as low as 6767, grrrr..........
Dow reversal should trigger a bit of profit taking in our market and Asia but I'll wait and see as I have not seen this much bullishness and hype in the world market since 1987 and dot net bubble run.
The amazing thing is BHP & RIO are up over 4.3% and 3.5% respectively in UK and were up more in US before the reversal, that despite copper is off over 1% and $A above US$90c. No doubt UK will come off later on today but the world market is just too hot to go long.
Banks should come off more than resources today especially ANZ which appears to be a false breakout to new high yesterday that is if it comes off today, lol.
Anyway, I found this analyst commentary on another post :
Despite mining stocks retreating on Tuesday as a result, the Australian share market still managed to post a new record high as buyers flocked into banks and industrials instead. But here's another interesting observation: out of the five major local banks three are currently trading above their respective average price targets, while ANZ ((ANZ)) shares are at their average twelve month target. This leaves only National Australia Bank ((NAB)) with less than 4% left between share price and average price target of $43.13.
Historically, when local banking stocks surge past their average price targets this indicates further upside is limited and a share market retreat soon follows. So far, we haven't noticed one single occasion over the past five years when this hasn't happened.
The situation is similar for those resources and energy stocks that have been the major drivers behind the recent record run for the local share market: Woodside Petroleum ((WPL)) shares are more than 6% above their average price target of $48.53, BHP Billiton ((BHP)) shares are also above their average target of $44.44, but shares of Rio Tinto ((RIO)) are still some 6% off their target.
(20min delay)