Well, the XAO got over the last trend line hurdle. It's been getting over every hurdle like Jana Pitman winning a Gold in the 400m. H.She's got one more to go before entering the straight and a clear run. And that's horizontal resistance at the 4900 area. We reached a little under that today with the XAO at 4878.
I've got more overbought readings than a sports writer's got hyperboles.
In America, the SPY has now had 14 consecutive days up. The previous record was 12 back in the 1990's during the dot.com boom.
Here's some Indices on the American market which have RSI readings of +70. Over 70 is considered over bought and often a signal for bears to go short. Over 80 - and it is usually considered a sure bet:
RUT (Russell 2000) - 77.6
IYR (Real Estate Investment Trusts) - 81.74
SPX (S&P 500) - 75.33
Transports - 78.2
Wilshire - 76.95
IYR (Real Estate Investment Trusts) - 81.74
SPX (S&P 500) - 75.33
Transports - 78.2
Wilshire - 76.95
The XAO is relatively tame by comparison, with an RSI of just 66.2.
Well - I remember being in the Brisbane Casino and seeing 19 reds in a row come up on the Roulette Wheel. People were flocking in to bet on black after 7 reds in a row. There weren't too many bodies left standing after the 19th red.
After the 19th red, there was one black, and then three more reds.
The market feels a little like that now. How many bears are left with any money? And who's still left to buy this market?
Random variations like this can kill you if you bet against them.
Wait for the trend to change. You'll be a bit late - so what? You'll still be alive.
Here's a couple of tidbits. The only two Industry Sectors to be above their January highs are Health and Consumer Staples. What is going on? These are both Defensive Sectors and they are leading a bull market higher? That's weird.
Cheers
Red
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