Short Term Trading Week Starting: 13 Aug, page-27

XJO down moderately today -0.42%.



XJO remains within its sideways consolidation – albeit with a slight upside bias.  But until it breaks above overhead resistance – this could go either way.

Breadth today was poor.  It was so bad today that we can expect some upside tomorrow.  Advance/Decline Ratio today stood at -0.22.  Anything below -0.2 has a good chance of bouncing tomorrow.  No guarantees – it could simply get worse if the market is in a cascade down movement.

Of more worry is the AdvancingVolume/DecliningVolume Cumulative Line.

For the first time since mid-July 2017, the AV/DV Cumulative Line has dipped below its 50-Day Moving Average.



This could signal the start of a major correction.

Four large-cap stocks reported today.  Here are the charts:

JBH:



Opened more than +5% higher and then fell heavily.  It finished down -0.38%.

BEN:



Similar story.  Opened on the upside and then fell.  It did, however, find support at the 50-Day EMA – don’t write it off.

AZJ:


Aurizon opened more or less where it closed on Friday, then advanced on intra-day buying.  It finished up +1.82%.  That looks good, but remember that AZJ is well below its 200-Day EMA.

BSL:



Bluescope opened well on the high side, hit resistance then fell heavily to finish down -1.45%. At best it was up >4%.

We have a clear theme for today.  Good reports were welcomed, initially, then the stocks fell heavily on general market weakness.

The exception was Aurizon.  That’s the one to bet on from here.

RB