Market Comments - 8/2/2011

Is this just a little too neat? The stock market (XAO) is close to 5000, and the upper restraining line of its trend channel. RSI, Stochastic and Williams %R are all overbought.

Could the market hit 5000 - and then retreat? hmmm.

Down to today's action.

The XAO was up modestly +0.4%. The Twenty Leaders (XTL) was up 0.6%. The Small Ordinaries was up 0.2%.

That looks like weakening breadth. Not a positive sign.

On the plus side, the weaker indices tended to be the Defensives - Utilities, Telecoms and Consumer Staples were all down. Though Health was up - more or less in line with the market +0.3%. The worst performer was again the Consumer Discretionary -0.8%.

Hello Recession?

I've just finished watching the news - and Recession talk is all over it.

The Phantom of the RBA has done it again. Remember how the RBA was still lifting interest rates well into 2008 - when it was obvious that a calamity was falling on the world's economic system?

Well - it looks like he's done it again.

And so many pundits in the rest of the world admire this guy. (Just go read the Daily Pfennig - on my blog roll.)

On that cheery note,

Have a good night

And good luck

Red