Thursday 11th Jan - Kill Procrastination day, page-2

XJO down today -0.64%.  (I expect this to flow through to overnight markets in Europe and America.)


T
he negative divergence on the CCI played out today.

The chart shows a four-day candle-stick reversal pattern.  You won't find that in any books on Candle-stick patterns, but I've observed it often as a reliable pattern.  Expect more downside.

Indicators are all turned down - so that confirms the short-term bearish scenario.

Info.Tech was flat today, all other sectors were negative.  No clear pattern emerged in the sector results.  The weakest was Property -1.7% which suggests concerns about interest rate rises.  That's reasonable as interest rates were rising in overnight markets in America.  Telecoms down -1% - that's another indicator of problems with interest rates.  Materials down -1%, that's a function of metals prices which tend to be inverse to ........ you guessed it  .......  rising U.S.$ which rises when ......  interest rates rise.

So, we're seeing a problem emerge in markets because of interest rate rises.

Banks like modest interest rate rises, so that might be the place to be.

RB.