coercive borrowing - monday, page-4

Above is a Candle Stick Chart for the XJO.

50 Leaders -0.1%
XJO -0.0%
Materials +0.2%
Financials x-Property -0.3%
Small Ordinaries +1.1%

Blue Chip stocks going ex-dividend today were Commonwealth Bank and Telstra. CBA declined $2.15 with a dividend of $2. Telstra declined 19c with a dividend of 14c. Two big stocks like this going ex-dividend impacts the market result for the day, but both were down more than their divvies.

Stocks reporting today:

Amcor, down -1.78%
Bluescope Steel, down -14.08%
Bendigo and Adelaide Bank, flat 0.0%.

Stocks reporting tomorrow: BHP, QBE, Arrium, and Coca-Cola Amatil. BHP and QBE are likely to be market moving.

Comment: Today finished flat. Not too bad considering CBA and TLS were ex-dividend. Breadth was good. Volume was high for a Monday but that’s probably explained by dividend stripping in CBA and TLS. TLS volume, for example, was 117 million out of a total volume on the XAO of about 900 million. Telstra volume on Friday was about 40.5 million – and that was inflated due to OpEx settlements. So today's Telstra volume was a very significant part of the overall volume. Add to that CBA's volume - and today's trading was probably a low volume day - flat on a low volume day - indecision.

Breadth today was good.

Technical Comment on the XJO (closed at 5112.5):

Horizontal Support/Resistance: 5117.18
40-Day Moving Average: 4992.2.

Indicators

RSI9: 57.3. Down from the overbought level.
MACD Histogram. Marginally above zero. Neutral.
MACD: Above zero. Positive.
Stochastic: 73.8. Falling below 80 and its signal line. Negative.
CCI.14: +33.2. Falling. Bears want this below zero.

The Index is within a trading range and above key Moving Averages. It is also above the key support level of 4980. That and the 150-Day and 40-Day TMAs have now more or less converged. A break below that would be very bearish. Until that breaks, the BTD mob will probably keep adding to positions.

BHP has been tearing upwards since early-July. It's up about 20%. It's report had better be good tomorrow, otherwise this is going to be caned. Tomorrow looks like being a key day.

Redbacka