Market Comments 14/6/2010

The market was up a smidgin today. In percentage terms it was up 0.0%. Nothing. Zilch. Nada. As flat as a mill pond. Boring.

I wish I could offer some amazing scintillating insight. But I can't. It is what it is. Flat.

The RSI still lies at about 50 - the mid-line. The Williams %R is close to zero - the top of the range. That doesn't mean a lot with a fast moving indicator like W%R. I only use it as a check against overexuberance on the RSI. If W%R is going down while RSI is relatively flat - disregard the RSI.

Volume was low today. Just over one trillion shares trading against a 50-Day Average of about 1.4 trillion. That just confirms the unwillingness of traders/investors to park money in the market as indicated by the flat Index.

Momentum appears to be slowing, but that can pick up again.

I'm still bearish long-term - but undecided short term.

Cheers

Red

Final thoughts for tonight. 29/12/09

(Click on above chart to see bigger version.)

I don't often comment on intra-day charts, it's not my thang.

But this one was too good to miss.

Looking at the XAO on the 10-day one-hour interval chart, the RSI was above 80 all day. That's a rare event.

A short term sell would be signalled with:

1. a drop of the RSI below 80
   
2. the Williams %R drops below -20
3. a break of the MACD below its signal line.

A further sell signal would be rung if the MACD remains below its signal line and:

1. Williams %R drops below its mid-line
2. RSI drops below its mid-line.

Good-night from your bearish commentator.

Remember - do your own research. I'm just a befuddled old grandfather.