AZL General Discussion, page-8776

Are we walking again?

Yes, AZL remained flat today to finish on 13c. Our volume was similar to yesterday, just under 22m shares traded.

ASX Li stocks had a decent day. Of the 42 stocks I track, average gain was 3.5%.

Overnight US stocks did well. DOW was down by over half percent in the initial trading, but Li stocks were surging. It was a good indicator of the decoupling. We need more of that as DOW has been unpredictable and weak for last couple of months - though its behaving well since last week.

Today we wanted to move, but as I mentioned this was the third phase (after big fall and small fall). Many stocks don't get a full start. Although it was disappointing not to gain today, but its borderline and small numbers we are talking about. Average gain across 42 stocks was 3.5%. If we had finished at 13.5c, we would have been ahead of the average. So today was fine, but we don't want to miss the run - which hopefully should happen next week.

What next - As I said yesterday, the probability was for a green, and luckily we got that. Tracking the last 3 days around how stocks have generally behaved - a big fall, a small fall, a small gain. I was expecting this small gain today and had mentioned in my report yesterday. But today's gain reflected stocks walking again. In this phase of initial walk, many stocks were still hesitant, not totally convinced. If the cycle of 4 days is to be completed, next we should be running. This is where we may see big gains for stocks across the board. This is the behaviour we used to see of Li stocks over couple of months back. DOW had a big gain yesterday. Probability is for a flat night. But DOW has to give a message, that the recovery which started over a week back, with slight correction, is still continuing. It may surprise us again with a good green. Lets hope so. All the best.