Thursday 4th Jan - Hindenburg Omen Day, page-2

Overnight Markets:



Major American indices finished higher again led by technology stocks. Dow Jones +0.4%, SP500 +0.64%, Nasdaq +0.84%, NYA +0.42%, Banking +0.52%, European Top 100 +0.42%.

SP500:



SP500 finished at a new all-time closing high. That concludes Hirsch’s Santa Rally time period (26 Dec. to 3 Jan.). SP500 up >1% in that time

Indicators have turned up, but continue to show negative divergences. MFI is underperforming the SP500 which suggests the “smart money” isn’t participating in this rally. That may be a factor of the holiday season, but once MFI starts to underperform, we must be on the watch for an end to this rally. Until then – stay with the trend.

The trend channel has turned up. The bearish candle on the last day of the year has been negated and the index has finished above horizontal resistance. Stay with the trend.

Advance/Decline Line



The Cumulative A/D Line remains bullish. While it continues to rise, that should underpin the American market.

Commodities:

DBC +0.6%. Energy +1.51%. Industrial Metals -1.03%. Copper Producers -1.03%. Gold -0.26%. Iron Ore unchanged.

Gold had its first down day after 11days up in a row. Expect some consolidation or pull-back. Buy the dip.
BHP in New York was up +0.4%, Rio up +0.37%. Ozzie Dollar was up +0.1%, so that didn’t help the two big miners much. Expect modest rises in the two big miners today.

The banks didn’t help our market yesterday. Maybe they’ll cooperate today and give our market a hefty shove higher.

We should open well up today with Ozzie Futures up +0.5% overnight. If the banks co-operate, we should finish strongly.