7 August 2009 – Four days of nothing

Fri, Aug 7, 2009

ASX Commentary

A little up, a little down. This is good. This is what we want to see in order to build a foundation for renewed strength. There is no guarantee that renewed strength will come, but taking a breath after the recent advance is a positive. The week saw the index gain about 50-points but all that came on Monday. Since Tuesday the index lost 10-points, so 4-days of sideways trading. There are no red alert bars which is also a positive but we need to realise that the positive US earnings have already priced a positive ASX earnings season ahead of time. When those earnings come along in the next 2-weeks we may be seeing a ‘buy the rumour, sell the fact’ scenario. The only way to really get the strength going is much better than expected earnings and strength from the US. A failure to see either could place pressure on prices.

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This post was written by:

Nick Radge - who has written 899 posts on The Chartist.


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