My Webinar Tomorrow, Market Update

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.