casual day - friday, page-5

I'd like to give Jako a title as well but I am dead against going backwards in life......can't we just say Jako is THE BEST!!!

Back to markets as there is just so much happening at the moment.

The NASDAQ Comp and RUT have been the two weakest of the major indices. But interestingly they are both getting quite oversold. So.....when they bounce, are they just going to pull back up under the little top patterns they have formed (the RUT has a potential double top and the NASDAQ has a nice little head and shoulders) or – and here is the million dollar question – are they going to break topside? Just looking at the daily close chart of the SPX, it is possible to make the argument that it is forming a neat little triangle. If that is the case, it is likely to end up being a fourth wave with a fifth UP to come.

Precious metals continued lower overnight but attention switched back to the energy complex that was stronger.

But the really interesting market overnight (besides the Aussie dollar, the New Zealand dollar and the Loonie) was Brazil. It has performed badly for many months but has rallied over the last few weeks but last night absolutely flew higher. Don’t know why it was so strong but I like to keep an eye on that one as they tend to be our main competitor in a number of markets. Could it be encouraging for Australia?

Mentioned a few days ago that our interest rates have been clicking higher. Has even spread to 90 day bills now.

Also mentioned a few days ago that I thought it important to watch the next correction in the SSEC. Eased off yesterday. If it does a bit of work around 2020, we might end up with a little head and shoulders bottom in this market. Now that could really be interesting.

Another new high in India yesterday.