Market Comments 1/12/2010

Today was another flat day. The market was up just 0.01%. Plus - the market remains above the down trend line.

In the past six trading days, the market has seen three reversal days to the upside. That's unusual.

One reversal day - maybe that doesn't mean much. But three? This looks like Accumulation of the Mucho Mucho Kind. Smart money at work again? Possibly.

Still - let's not pre-empt the market. A break above Monday's high would be, for me, a GO signal in flashing neon lights.

So, what blue chips are on Life Support today?

• Coca Cola Amatil - RSI at 25.9
• NAB - RSI at 29.7
• Wesfarmers - RSI at 29.9
• Woolworths - RSI at 28.4

Think about this. Three out of the four in this group are from the Consumer Staples group (all except NAB). Consumer Staples are usually considered defensive stocks. But we're in a down trend!!! Consumer Staples should be bucking the trend!!! What's going on? Beats me. Unless we're now seeing the end of the down trend and the big money is saying there's no need to be defensive. ... Just a thought.

Blue Chips on the critical list (RSI below 40):

• AGL Energy
• ANZ
• CFX
• CWN
• FGL
• LEI
• OST
• QAN
• STO
• 
  

Stocks that took my eye: not much really. Brambles continues to appeal, and so does Oil Search. Both have performed reasonably well in this current downturn; and show some signs of turning higher. But - Do Your Own Research.

Good Luck

Red