Just Ignore it..... - Tuesday, page-2

And the Winner is: Malcolm in the Middle. Champers please. Wednesday night, 14 September, 2015.

A bit late tonight - but there was a bit of a kerfuffle down in Canberra that distracted me for a while.

Here's the chart for the XJO today:



The XJO was up +0.5% after being up much higher in early trade. It gave back more than half the early gains, but finished with a respectable figure after a good afternoon session.

The leadership in Canberra might have changed, but today's action on the market doesn't change anything.
Today's candle is slam bang in the middle of the current trading range. We're going sideways, and probably nothing much will change that until after the Fed meeting finishes in America. Then we'll be left to mop up on Friday.

Here's the Relative Strength Chart for various Sectors and Industries on the Oz Market:



Utilities remains the most highly rated of the ten S&P Sectors. That doesn't mean a lot as it is in a sideways trend. While the general market is headed down, a Sector in a sideways trend will appear as a strong sector - but it is all relative. There's not a lot to get excited about on the market if the best performer is in a sideways trend.

Clearly the worst performer is the Energy Sector. Stocks like Santos and Woodside are getting creamed.

Gold has the strongest reading. Here's the chart for the Gold Miners.



We can see here that XGD is in a sideways consolidation with a slight upward bias. That results in a favourable relative strength reading. But - it doesn't have a lot going for it. The consolidation is at the low end of a medium term down trend. It's just doing better than the broad market - but not doing very well. if that's the best - it doesn't say much for the rest of them.

The interesting thing about these ratings is the fact that breadth is not too bad. Mid-Cap 50 and Small Ordinaries are doing better than the 50-Leaders, so there is some underlying strength in this market. That's not saying much as the market is very very weak.

All that suggests we're in for a few lack-lustre days until America does something on Thursday night (our time).

RB.