I'm so tired of seeing the thread 'Not impressed' that I figured it was time to start another, plus I am impressed with what's just happened.
Let's start with the TA picture (without the picture LOL!):
- we had a tweezer bottom (sounds painful) with 0.012 touched twice (on 8 & 9 May), both of which were doji with relatively high volume (i.e. lots of punters involved in the battle to establish a position which ended up neither high, nor low, but in the middle, so effectively no-one won except sanity)
- MACD crossed over on 3 May and continues to gap up (translation for you non-TA people: also good news)
- MFI (money-flow index) has been in the 'Oversold' zone since it came off its 5.3 cent SP high in mid-February, but had a significant blip up yesterday)
- IO has stopped plummeting and is starting to give confused messages, which may be a signal for a return to an upward trend (correct me if I'm wrong here IO gurus please), or at least a plateauing.*
All this added up to me thinking I would average down again or engage in another pip trade, so with the SP opening 0.013 this morning I figured I couldn't be bothered frigging around waiting at the back of a 50M queue and I put a buy in for 0.014 (plus I'd noticed that there'd been a few cross-trades at 0.0135, and one at 0.014 - meaning at least one other person was thinking optimistically like me!). But despite there being 35M in the sell queue at 0.014, I got them in a cross trade at 0.0135. So, I was
very impressed to have saved half a pip on the purchase, but here's the question: while I know in theory what a CXXT cross trade is, what I don't understand is why someone else misses out on the half pip. Where do these cross trades originate that someone is willing to take that loss against a buyer who is willing to pay more? And I'm looking for knowledgable answers here, not smart-ape replies!
GLTA LT-ers and ST-traders, GW
P.S. I'm calling in 0.012 as the bottom of this down trend and while I think it will bump along at around 0.012/0.015 for a while yet, I reckon 0.012 is it (barring unexpected bad news).
* I attended the RIU Resources Round-up (Resources Roadhouse) in Sydney yesterday (thanks HotCopper for the free ticket!!!) and one of the keynote speeches was from Westpac Institutional Bank's Chief Economist, Justin Smirk, who, inter alia, trotted out the same old, same old spiel about IO, that having peaked earlier this year, would stay down now for ever ... However, overall, he was optimistic for the resources sector.
