XJO Weekend Charting and Chat - 6th Oct 2017, page-5

In Australia yesterday:



Trading Positions Matrix for the XJO:

• Short Term: Flat
• Medium Term: Short
• Intermediate Term: Short
• Long Term: Short

Expect more upside in the short term, but that shouldn’t change the Trading Positions.

Australian Small Ordinaries recorded a one-year high yesterday.



The XSO is heavily weighted to mining stocks. That’s the place to be in the Australian market while the broad market continues to be mired in its sideways trend.

Overnight Markets:


Dow Jones -0.01%. SP500 -0.11%. Nasdaq +0.07%. NYSE Index -0.17%. Germany -0.09%. U.S. Banking Sector +0.15%.

Indices finished flat. Consolidation or pullback seems likely after the recent rally.

The correlation between the Australian market and the American market over the past 30 Days has been about -0.2%. That’s insignificant so don’t expect any flow-ons from America to Australia.

SP500:



A clear negative divergence has set up on the Money Flow Index. It and the CCI have both closed below their 5-Day MAs. A pullback seems likely.

Commodities:

DBC -1.15%. Energy -2.48%. Industrial Metals -1.17%. Copper Producers -0.04%. Gold +0.47%.
The fall in Commodities is likely to impact our Energy and Mining Companies on Monday.