Never short a slow market.That's an old stock market adage.
Well, slow markets don't come much slower than today. The volume was the lowest since the Xmas/NewYear period, when sensible people :) are at the beach and recovering from over-indulgence.
The market (XAO) was down 0.3% today. Just noise.
Are there any other reasons not to short this market?
Looking at the Slow Stochastic, it is showing some positive divergence from the XAO chart. Not enough to bet the house on, but worth watching. A move by the Slow Stoch back above 20 would be a short term buy signal.
While the general market was down, the Small Ordinaries were up 0.4%. So there was some risk appetite in evidence.
The Advance/Decline ratio was 0.98, almost par. Not a lot to go on - but enough to say, today was not a day to go short.
The Australian stock market is often sluggish ahead of an American holiday, and then pick up steam, one way or another the day, the Americans return to work. So - watch tomorrow carefully.
Cheers
Red
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