The Australian Stock Market Is Still Volatile

Submitted by Marco on 19 June, 2006 - 21:35

The All Ordinaries closed today's trade lower, shedding 1.3 per cent closing at 4869.9 while the S&P / ASX 200 was on a steady downtrend today, losing 1.4 per cent closing at 4901.2. But you aren't here reading my website for this crap aren't you? You're probably wondering what to trade tomorrow or what to do with your current losses. Well sorry can’t help you there! All I can offer is some trading commentary, some "hot" tips from the brokers (which aren’t always correct mind you) and some trading "advice". Anyway, my favourite old BHP was shot down by profit takers, and who wouldn't after Friday's spectacular move? Profit for any short term day trader who managed to time the market correctly there. In these times of high volatility, short term trader take what they can get. There is uncertainty for the short term, the uncertainty is feeding the current volatility in the Australian Stock Exchange.

BHP opened at $27.10, reaching a high of $27.23 before losing 63 cents and closing at $26.80 or 2.3 per cent. Rio Tinto on the other hand also lost money. This would have been a great shorting opportunity... although a trade like this has its risks. If you would have been day trading this stock and closely watching the price movement it would have been a great opportunity! The stock closed at $74.80, losing $2.10 or 2.7 per cent. For now, volatility will rule the market. Bullish traders with a longer term horizon will benefit from the discount prices while bearish traders will see this as an opportunity to ride the new downtrend. As for me, I will stick to the short term trades until the market consolidates further.