A day of consolidationYes AGE lost 3 pips to finish on 5.6c. Our...

A day of consolidation

Yes AGE lost 3 pips to finish on 5.6c. Our volume was comparatively lower, just over 13m shares traded. Its been fifth day in a row its playing in the trading range of 5.5 to 6.2. Looks like consolidating, preparing for next jump - if markets behave

ASX U stocks were soft in this consolidation day. Of the 19 stocks that I track, average loss was 1%. Yesterday U Future lost another 20c to finish on $49,25

What next -

ASX today was very tame. Yesterday US indices had a very big rise, all indices rising between 1.5 to 2.5%, but ASX finished flat. We did not get that rise, which meant instead of stocks making some good gains, most were treading sideways.

One peculiar thing about yesterday US market was that though all indices were big green, it was not reflected in resource stocks. Most stocks that I follow were in red. So it did a complete opposite of previous day - when indices were red and resource stocks were green. 2 days in a row it has played contrary to the index.

Personally, after doing the big buy yesterday, today was a quieter day, but added a few more. Still not totally convinced as the two indicators I mentioned, have not yet been achieved.

The two indicators I am waiting for - SP 500 to go above 4200 and stay, volatility index VIX to go below 20 and stay. First 2 days of the week both went against I wanted, but yesterday there was a turn around. SP 500 now sits at 4155 after dropping earlier below 4100. VIX is also becoming favourable - its at 21.95 now after reaching close to 25. So both going in right direction. Looks like the test may happen soon.

So what will happen tonight? US Futures are in slight red. VIX is in a good position. Cryptos are totally confused. they dropped yesterday earlier, then regained, but are losing again now. Bitcoin below 23k - so they are not confident. Our friend Oscar says a double top in indices is coming for Dow, SP 500 and Russell - similar to what happened in March. Usually double tops are sells, but only if it retreats. Some happy campers are expecting we do not retreat this time. Lets see. Will we see SP 500 break the dread and go past 4200 tonight, looks unlikely for today, but US markets have surprised us a lot. Lets hope we do not get a big red, a small red is fine, green small or big is great. All the best.