Our All Ordinaries Index and the XJO failed to extend yesterday’s gains, closing down slightly and trading in a very tight range as did the major US indices overnight. Their futures have also been flat during the night session so our market drifted without any lead for direction. As the Nasdaq is leading the Dow Jones and S&P 500 forward, so too is our Small Ordinaries index leading the larger cap laden XJO. It closed up today and up for the week, the XJO the opposite, as the smaller back end of the market continues to be the mover and providing the more fruitful trades. US unemployment data out prior to the open tonight which can often move the market around.

Get a Free Chart of the Week at The Chartist

Friday 3rd February, 2012

Overnight European markets were very strong and US markets were up, although not as heavily. As a consequence, our market burst out of the blocks on the open, range trading thereafter. It started to fade at lunch time and looked like it might start to give up gains as it has done recently but managed to hold on for the most part, the XJO up around 1%. Strength came from the Metals/Mining, Materials and Information Technology sectors. After yesterday’s increase in volume on the down day, it will be interesting to see today’s levels later on. The session was a good rebuttal to the pullback of the last three and we slowly edge higher toward the top of a trading range at around 4400.

Get a Free Chart of the Week at The Chartist

Thursday 2nd February, 2012

Our market succumbed to some selling pressure today on increased volume, the XJO down from just after the open to close its lows for the day, posting a 0.9% decline. Most sectors finished in the red, Metals/Mining and Materials the biggest laggards, both down 1.3%. Momentum is now starting to flatten off as we see some stops being hit in the short term portfolios. The persistence of this sideways market will test trader’s resolve and patience, but perhaps Peter’s XAO analysis last night may help provide some clarity and some levels to focus on.

Get a Free Chart of the Week at The Chartist

Wednesday 1st February, 2012

Another subdued session on the ASX, trading within a tight range. Intra-day gains were given up in afternoon trade with only modest declines posted. For the month, the XJO has managed to gain just over 5% in somewhat erratic fashion. Despite that, and despite our systems taking plenty of signals, the market remains range bound and from a discretionary trading perspective, conditions remain tough. Many breakouts are quickly rolling over and lack follow through on the initial break. Strict risk management therefore, remains an integral part of any trading plan.

Get a Free Chart of the Week at The Chartist

Tuesday 31st January, 2012

Our market spent much of the day range trading so was pretty directionless after some early downside which resulted in the XJO closing down 0.4%. Most sectors finished in the red after a quiet day. Reporting season essentially begins this week here, just as the same starts to wind up in the US after a hectic week just passed. Woolworths and Westfarmers are two of the bigger names reporting this week. US jobs data is released toward the end of the week which can spark some movement so it should be an interesting few days.

Get a Free Chart of the Week at The Chartist

Monday 30th January, 2012

After a day off, the market opened strongly and was chugging along very well until about 2.00pm when it all went awry. Most of the gains were given up for the XJO which closed up just 0.4%, again driven by the major financials which also gave up early leads. The Small Ordinaries was stronger, up 1%, boosted by the Materials, Gold and Metals/Mining sectors which were all strong. Our Systems Portfolios continue to generate signals, coming in thick and fast now, the ASX Systematic model account is now full.

Get a Free Chart of the Week at The Chartist

Friday 17th January, 2012

The XJO managed to hold onto early gains for a change and indeed, added to them in early and then late afternoon trade as it put on 1.1% for the day. Earnings in the US sparked the opening gains here as Apple traded around 7% higher after market. Later, inflation figures fuelled speculation of further interest rate cuts, and so it was the financials that drove our market higher, leaving other sectors well behind. The big banks were strong, in particular WBC and CBA which were 3.5% and 2.4% higher on ultra-high volume. Not participating in the rally was the Small Ordinaries, only managing a 0.3% gain for the day. The ASX is closed tomorrow so re-opens Friday – enjoy your Australia Day.

Get a Free Chart of the Week at The Chartist

Wednesday 25th January, 2012

As has often been the case lately on an intra-day basis, early buying enthusiasm quickly waned. Opening gains were again sold off for the remainder of the session for the XJO to close flat. The day’s range was tight as the sideways movement continues. For a pretty uneventful day, the Gold sector was a standout, putting on 1.2% – others were a mixed bag. US markets were also flat overnight and the index futures are currently not offering much insight into what tomorrow may bring as they trade the night session. The Growth Portfolio continues to generate signals and is really starting to provide a good mix across all risk categories.

Get a Free Chart of the Week at The Chartist

Tuesday 24th January, 2012

Intra-day, the market struggled to make up its mind up which way it wanted to go but did maintain a slight downward bias for the most part. The XJO closed down just 0.3% after a lacklustre session within a tight trading range on light volume. Despite the broader market being flat and range bound, the Growth Portfolio is beginning to generate several signals per day as it gets busy picking up stocks that are moving. Also active, the ASX Systematic Portfolio is starting to fill up and would not be too far from being fully invested. A meeting of Eurozone finance ministers later tonight may spark the US and European markets, direction would be anyone’s guess.

Get a Free Chart of the Week at The Chartist

Monday 23rd January, 2012

Our market almost repeated yesterday’s movement of initial gains followed by a steady decline to give them up. If it wasn’t for a rally in the last hour and a half, that would have been the scenario. As it was, a little respectability was restored late on some encouraging volume. Resource related sectors again were the dominant part of the push higher, but had widespread support. The XJO closed up 0.6% for the day and just 1.04% higher for what was a fairly flat week. Short term, the market is overbought but momentum is up as the market slowly grinds higher.

Get a Free Chart of the Week at The Chartist

Friday 20th January, 2012