Morning Coffee, Friday, 30 April, 2011

In America:

1. Dow Industrials +0.57% 
2. Dow Transports +1.18%
3. SP500 +0.36%
4. Russell 2000 +0.38%
5. Nasdaq100 -0.15%

Comment: Mixed market with strength generally across the board but the Nasdaw showed some weakness.  The Materials Sector -0.02% and Energy Sector -0.01% were both down marginally. was up +0.32%.  That's a plus for Australia.  The Banking Sector was up moderately +0.49%.  Semi-conductors was down -0.69%.  hmmmm. 

Europe:

1. France +0.91%
2. Germany +0.95%
3. London +0.03%

EWA (Australian Shares ETF traded on the New York Stock Exchange) +0.25%, The Australian Dollar was up +0.52% to finish at 109.26.   That's another positive for our market - although the strength in the Ozzie Dollar has had any effect on our market during the past couple of days.

Technical Comment on the Dow Industrials:

1. The Dow Industrials finished at 12763.9
2. The Index is above both the 13-Day the 50-Day MAs.  Positive.
3. Indicators:
• Slow Stochastic 97.3.  Overbought
• The 13-Day MA is above the 50-Day MA.  Positive
• RSI above its mid-line, now 71.3.  Now out of the caution zone (60-70) and into the danger zone (above 70).  Overbought
• MACD Histogram above Zero.  Positive.  
• CCI +238.5 and flat.  Above 200.  Overbought.
4. Volume was down for the second day in a row.  Demand is slowing.  The trend in volume since the market bottomed in mid-April has been steadily down.  That's not a good sign.
5. Three consecutive closes clearly outside the Bollinger bands.  That sets the market up for a short term consolidation or retracement.

In the past 24-Hours Gold in Ozzie Dollars was down -0.17%.  Its price was subdued by the strong Ozzie Dollar.

And the price of oil remains high - now above 113 for West Texas.  How much longer can the price of oil continue rising without impacting broader economic concerns in America and their stock market?  As long as Uncle Bennie keeps flying his helicopter?

The American market is now more overbought.  My opinion:  this is not a time for entering the market. 

Good luck

Lance