Collect your Thoughts - Tuesday, page-2

The XJO closed at a new high for this move but would be stretching it to call it a topside breakout. So looks like we need a bit of a correction again. However, there are some encouraging things in the background – I keep an A/D of the 52 week highs/52 week lows and that has actually nudged above recent highs. I would class it as encouraging – nothing more. Both the XMJ and XMM are looking a wee bit vulnerable short term. But I still think the big picture on both of these indices is looking positive.

Coal fell another dollar to 67.20. I have a return line coming through on my chart around 66.50 but there isn’t much other support at all. As I said last week, I think we are going to have to see more mine closures and overseas companies walking away before we will see a low in coal prices. Still have not seen anything in the press despite the continued slide in prices. Iron ore down. Oil had a good session but grains were practising their swan dives again. Cocoa and sugar improved. Be typical wouldn’t it – most things go down but one of life’s special treats – chocolate – would go up.