I presented for the Australian Technical Analysts Association in Melbourne last night and shared some of the TA tools and indicators I use in my own stock analysis.
I am going to give a similar presentation in a webinar tomorrow with MetaStock. You are welcome to join.
It will be held on Saturday at 12pm AEDT (Melbourne time) / Friday 8pm New York time. You can register to attend here. I look forward to speaking with you then.
One of the things I talked about in my presentation last night was the performance of various indices, including the DJIA, S&P500 and S&P / ASX200. The two US indices are at all time highs yet the ASX200 is a long way off.
Even though the ASX200 has been moving well over the last few weeks, I am not so bullish. The current rally is effectively being carried by the banks and miners – that’s it.
The Advance / Decline (A/D) line confirms this. Whilst the index is close to the previous peaks in August, the A/D line is a long way short (see the image below). This is indicating that most stocks are not performing overly well and the index is likely being carried by the banks and BHP / RIO.
Image from MetaStock
This week the highs / lows reading is 1 / 2. The two new all time lows this week were TOE and XIP (again). S32 is the new all time high stock.
I made a comment last week that perhaps the Australian dollar had entered a new range under 0.7450 / 0.75. It has done well in the last couple of weeks to rally higher however it has run into stiff resistance at the 0.75 level. It formed two classic doji candlesticks in a row around 0.75 to confirm the rejection at that level, and even again in the last couple of days it has been made a solid run at 0.75 only to be sold off again.
I am watching with interest now to see if it can rally again and move back above the 0.75 level and return to its previous trading up to and around 0.77, however I wouldn’t be surprised to see it ease from this point.
As I type this it is trading around 0.7460.