Post Prandials 4/4/2011

The XJO (ASX200) rose moderately today +0.6%.  The Fifty Leaders was up +0.3% and the Small Ordinaries was up strongly +1.2%.  Materials up +1%. Holding back the big caps was the Financials Index +0.1%.  Risk taking was the order of the day with mining stocks well in demand.

The XJO climbed back into the up trend channel from early December 2010.  That's a big positive.  Let's see now if we can get follow through buying to push it up decisively.

The market is short-term overbought.  The Stochastic is well into overbought territory and the RSI is nudging up towards the danger line at 70.  

The Advance/Decline Ratio today was bullish at 1.82:1.

There's nothing in those figures to suggest a major reversal, but the trend is getting long in the tooth.  I'm still expecting more sideways direction this week rather than upwards movement.  But until the trend changes (either down or to the side) the trend is up.  The motto is:  Stay with the Trend.

Good luck
Red