After a bit more excitement this morning with another flurry of...

After a bit more excitement this morning with another flurry of buying, the expected pullback on reduced volume this afternoon is starting to eventuate. Lots of algorithmic trading judging by the course of sales and it is having an impact on the SP due to the lower volume of shares being bought after the big increases over the last 2-3 weeks through the ASX300 rebalancing. Looking for the VWAP of around $1.60 to firm up towards the close today.

A larger number of shares (15.4M) were also sold short last Friday as well with the increased volumes held by Institutions who are prepared to lend them out. The Shorters will also try to increase downward pressure on the SP but we can expect key announcements in coming weeks to counter that pressure and keep those shorts burning. IMO, any pullback will be short-lived (pardon the pun) and the upcoming news flow should swing things back to some more positive sentiment. Weak hands and Traders looking to lock in profits will likely provide some ammunition for the Shorters initially but we should be looking for long term holders to show strength and hold fast through this period of increased news flow coming up.

Celebrate the great run we've had over the last 2-3 weeks but remember, nothing goes up in a straight line!

GLTALTH