31 August 2009 – Month End

Mon, Aug 31, 2009

ASX Commentary

A big day of events for the local market that leaves a sour taste for the near term well being. I suggest we may have seen a high today and that the awaited correction we’ve been looking for over the last few weeks may have started. Today saw a lot of shenanigans take place with month end, many stocks going ex-dividend as well as MSCI re-weightings of the ASX. The re-weightings created a lot of selling and closed the market very weak. Added to this was China dropping 6%. The rapid increase in volatility over there is a concern. The bearish divergence we’ve been on about for the last week or so has continued to build so todays early attempt to trade higher followed by a very weak close is a high alert proposition. I hedged my exposure using futures contracts and will keep these open for the near term.

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This post was written by:

Nick Radge - who has written 898 posts on The Chartist.


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