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.

Webinar

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.

ASX200

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.

xjo_20161209

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.

AUD/USD

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.

 

audusd_20161209

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Stuart McPhee
Stuart McPhee

Australian private trader for nearly 20 years, author, trading coach, licensed adviser and regular speaker at major trading events all around the world. Graduate of RMC Duntroon and former Australian Army Officer.