I received some sobering news this morning that one of the most popular members at my golf club died in the early hours of this morning, finally succumbing to his fight with cancer. Many messages of support have flowed between members this morning and it is a good reminder about perspective. Every Wednesday and Saturday I chase this little white ball around trying to belt it and I enjoy it immensely. However not all members do and often vent their frustration when things don’t go their way. Instances like this remind us that it is only a little white ball and that there are far more important things in life.
Likewise in trading … trading isn’t everything in life. I learned this a long time ago … a healthy dose of perspective is very important in trading as things will routinely not go your way. My health and happiness are infinitely more important than my trading results, I can assure you.
ASX200
Over the last few weeks the ASX200 has attempted to rally and move back above the key 5800 level, however despite its best efforts to rally, it has been unable to move back through. Throughout most of this week it has fallen sharply away and looks poised to retest the support at 5600.
It will be very interesting to watch what happens if the index tests the support at 5600 and whether it can withstand any selling pressure.
This recent movement has dragged the index down to ‘no return’ situation so far this year, as it opened the year back on 3 January at 5667 and finished today around 5677.
The all time highs / lows reading this week is 0 / 4. This is the first time in some time that there hasn’t been one stock in the top 500 that has achieved an all time high this week. The 4 stocks that achieved all time lows this week include Surfstitch and Apiam.
Daily chart of S&P/ASX200 Index | Image from MetaStock
AUD/USD
The Australian dollar has been able to surprise a few people over the last week as it has rallied strongly back through the key resistance level at 0.75. There would be traders all around the world jumping all over the AUDUSD presently and enjoying the highest price to sell since late April. It has shown some weakness over the last couple of days however the selling hasn’t been pronounced sending the currency back down through 0.75.
It will be interesting to see if there is any support for it around the 0.75 level or whether it resumes the decline.
As I type this, it is currently trading around 0.7532.
Daily chart of AUDUSD | Image from MetaStock
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