Anti-Depressants - Friday, page-2

Well - you know what to do.  Royal Bank of Scotland said to sell everything.  

It's all Doom and Gloom in the newspapers and the TV.  Here it is from the Fairfax press:

Australian shares touched 2½-year lows on Thursday as the ongoing commodities rout ... continued to rattle global markets.

Well - we can't argue with the first part.

The second part?

Metals and Mining Index (XXM) up +0.4%.

BHP up +0.75%.  

Fairfax comment looks a bit sus.

OK - I'm fudging a bit there.  Most of the Miners were down.  BHP and the Gold Miners saved the XMM.  NCM, for example, up +3.98%.

Energy was down -2.07%.  Woodside was down -2.08%.  Santos -8.04%.  Origin -3.11%.  Those Energy figures are very poor.  It's the Energy Sector that's doing the big damage in New York.  The Australian Energy Sector has a very different profile from the American - the Americans are dominated by Oil, while the Australians are dominated by Natural Gas.  But NG is not doing well.

Here's the chart for BHP:



It's far too early to be calling an end to the secular bear market in BHP and the other Miners - but this chart does show some hope.  Positive divergences could be setting up on the Accumulation/Distribution Index and the Money Flow Index.  

The chart is back to a Major Support Level from 2005 and it bounced today.

It could be ............. but don't bet on it just yet.

Here's the XJO chart for today:



Today's action could still be an attempt to shake out all the weak hands.  We could have a double bottom.

Could? Maybe?

We need to see a decisive break back above the 2010-2011 R/S Line and distinct improvement in the indicators.

Meanwhile the RBS "sell everything" and Fairfax's "rout" will continue to sway the sentiment of many investors.

RB.