21 August 2009 – Homes sales rescue

ASX Commentary

21 August 2009 – Homes sales rescue

Sat, Aug 22, 2009

Home Sales data ignited the market right from the open to see the highest close since the March lows. By the time the US session started China had closed +1.7% meaning that Australia will play significant catchup come Monday morning. We can’t dispute the trend here and we can’t fight it. At this stage we’re running about 7 long positions in the US and I’m happy to see those run their course. Of concern is significant Type-A Bearish Divergence very similar to what we witnessed back in June. Daily and weekly trends are up. Daily momentum is up. You can’t be short but watch that divergence.

0saves

Save

If you enjoyed this post, please consider leaving a comment or subscribe to our newsletter and receive a free sample of our analysis each week.

This post was written by:

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

Contact the author

Facebook comments:

Latest Share Trading Articles

The Hidden Strengths of Volume Analysis (part 2) September 19, 2010
In the last article I discussed two examples of how and why volume can show the changing face of supply and demand. When the order of supply and demand is change we will get a change in market direction, sometimes a significant change in trend or otherwise some degree of retracement of the prior move. [...]The Hidden Strengths of Volume Analysis (part 2) is […]
The Hidden Strengths of Volume Analysis (part 1) September 19, 2010
The power of correct volume analysis cannot be overlooked. Unfortunately the ability to read volume correctly is not readily discussed or freely available. Off-the-cuff remarks such as, “increased volume on advances is bullish and increased volume on declines is bearish” are bantered around but that’s as far as it goes. The correct use and application [...]T […]
The Psychology of Trading September 19, 2010
The most important part of investing and trading is psychology. Investing is a constant struggle where the battleground is not the market or advice given but comes from within you. You will face stress over losses, you will be in turmoil in deciding to enter or exit a position and it will place many demands [...]The Psychology of Trading is a post from: Shar […]