ASX Commentary
ASX into possible reversal zone…
Monday March 8th 2010
| Weekly Trend: | Up | |
| Daily Trend: | Up | |
| Daily Momentum: | ___ | Up |
The upper boundary of the reversal zone we discussed on Friday night was almost tagged today. This is the area from which any reversal should technically take place, but as we said, confirmation back through 4717 is required to get anxious. Todays close was quite weak and there is a small gap just below the market which will more than likely get filled in the coming days. Added to this we have four RED warning bars. Normally when we get five in succession a reversal of some degree will more often than not occur. Most strength today occurred in the smaller end of the energy and mining sectors with some substantial jumps. We’ll be discussing the Material Sector in more depth tonight with a full review. A little caution required here.
Mar 5th 2010
| Weekly Trend: | Up | |
| Daily Trend: | Up | |
| Daily Momentum: | ___ | Up |
We missed out on a few developing breakouts today today, namely CSL and CTX – both of which we’ve spoken of in recent reviews. They just didn’t quite fit the criteria. Another that is very close, and yet to break, is TPI. The market is approaching an important level between 4800 and 4850. Ir price zips through this level with some force then perhaps the immediate down turn we’ve been looking for is not the correct analysis and that 5000, the January highs, will come under threat. Some broader US indices have already broken through the January highs, so these are good signals of strength. That said, tonight is US employment data which tends to be a market moving event. Apart from volatility I’m wondering if it can set direction?
Mar 3rd 2010
| Weekly Trend: | Up | |
| Daily Trend: | Up | |
| Daily Momentum: | ___ | Up |
As you can see above, the daily and weekly trends have now turned up, meaning that the ASX Systematic PowerSetups are in action again. If you do follow that portfolio be sure to download the new signals. This also means that the real time model account will start placing trades again. As I stated last night, we’re unable to know how far this renewed strength will take us. It may rollover and die next week, or it may keep going for 3-months. We need to stay with the trend until it tells us otherwise.
Mar 2nd 2010
| Weekly Trend: | Flat | |
| Daily Trend: | Flat | |
| Daily Momentum: | ___ | Up |
Its been over a month since I made a short term trade on the ASX. Its been a good time to sit on one’s hands and do nothing. The ASX has just not be conducive to short term trading for many months now, unlike the US which has enough stocks exhibiting enough short term momentum to be worthwhile. That said there is a flutter of interest coming back in here. Our daily and weekly trend filters are on the verge of kicking UP which will switch on the Systematic Power Setups again. How far the market sputters higher is never known. Perhaps it will roll over again, or perhaps it will kick nicely. The other point of interest is the NASDAQ is showing some good strength. I just wonder if its about to try and tag its January highs? Feels like it.