The market was flat today with the XJO (ASX200) down -0.03%.The Indicators are all bearish (lower three panels) but the market still hasn't dropped below the dynamic trend line. (That's the stepped line on the Index panel.)
Until that is broken to the down side, the bulls still live.
It was an odd day today - with a lot to like about some of the action.
Intra-day the market had four phases. First - down because America was a bit weak.
Then the market went up at 11.00 when the Alcoa results came out better than expected.
Traders sold off into that rise and the market fell.
Then just after noon, the market said, hey - those Alcoa results were good - and the market went up for the rest of the day - to finish about square.
What was to like?
Some obvious bottom picking was going on with some of the most beaten down stocks:
- Mirvac - up on big volume (and above the resistance of the stepped trend line on the chart)
- Toll - up on big volume
- Woolworths - up on big volume.
Telstra, which has been in a sideways consolidation for some weeks, broke above resistance on big volume.
On the contrarian side, Suncorp was down on big volume - that looks like punters saying, Get me out at any price. That's often the sign that a reversal is just around the corner. It might tke a few more days yet - but the bottom seems very close.
Of those stocks, the ones that look the best to me are Mirvac and Telstra.
Now - none of that means that the market is about to reverse upwards. But when the smarties start to bottom pick, a reversal may not be too far away.
Good luck,
And if you're in a flood zone - you know that the best wishes of so many many people are with you.
Cheers
Red
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