XAO up 1.8% today.Today was an emphatic change in the trend from down to up. We don't often get to see such positive days on the market. Unless there's a Black Swan event, the market appears to have more room for upward movement.
Plenty of beaten down stocks, particularly amongst the big banks, made sizeable gains.
But, for me, the standouts were the blue chips making 20-Day New Highs. These were:
- Asciano
- Brambles
- CSL
- Oil Search
This is a disparate group but common to all four are their leverage one way or another to movements in the global economy.
Stocks remaining on Life Support (RSI under 30) are:
- Coca Cola Amatil
- Woolworths.
Stocks on the Critical List (RSI under 40) are:
- Fosters
- Wesfarmers
Stocks (other than take-over targets) on Testosterone (RSI above 70) are:
- Sonic Health Care
Other stocks of interest today with RSIs over 60 were:
- BHP
- TLS
Today I was like a kid in a lolly shop. The dart-board stock-picking method would have invariably picked winners today. On such a day of broad based advances it's probably best to stay calm and if you have to enter the market, instead of trying to pick the best stocks, just buy the XJO index tracking stock, STW. It was up 2.03% today. It has the advantage of lower volatility, lower transaction stocks than buying a basket of stocks, and high liquidity. The spread today was only about one cent on a stock trading in excess of $44. Anyway - that's just my lazy old man's opinion. You might have a different one.
Cheers
Red
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