Trading Update 1st June 2009Lonmin (LMI.L) continues to move North. When a trade starts to make a nice move in my direction(+16% on the trade - 2.1% for the AtticFund) I find myself considering closing the position in order to protect the profits without having any real exit signals. Lonmin still looks strong to the Long side and so I'll amend the parameters of the trade in order to lock in some profits, and I'll stick on in there and try and ride this bad boy higher. The annotated graph below should serve as a reminder of why I still like this stock (it's also the first glimpse of my AmiBroker Interface....exciting stuff huh!)
My attempted short on Talvivaar Mining (TALV.L) wasn't filled (thankfully!). The stock rose 13% today! I did write yesterday that it was an experimental short trade, and I stick by that. My position size would have been small. I was expecting a small retracement, but as the overall market conditions are bullish I do not currently want to be too heavily exposed to the short side. What actually happened was that Talvivaar came roaring out of the blocks and never looked like retracing. I guess this happens with a strong stock in a strong market.
For the time being I have canceled my order on Spice (SPI.L). I'm expecting a retracement, but it's not clear just how large that retracement may be. All the signals are looking bearish (Momentum reducing, Overbought RSI). I'll continue to monitor it and will look to get in when I see some signs that the current trend is likely to continue.
