Corporate Surrender - Friday, page-2

Another solid up day in Oz. Thursday Evening Liqueurs. 27 August. 2015.

The XJO performed fairly predictably today after solid advances in America. Up from the start and then a sideways drift through to the end of the day, sliding lower in the last half-hour or so.

Volume was higher than comparable days in recent history (118.6% of the 20-Day Average). That suggests that some profit taking was occurring. Plenty of people wanting to get in on this run-up and the early birds were selling off to them. Who was the smart money - and who was the dumb money? I'll leave you to answer that question.

Here's the chart for the XJO:



The chart currently shows a nice v-shaped reversal off the deep sell-off.

Indicators are still benign. More upside seems likely. The test will come when the chart gets up to horizontal resistance and round about where the Super Trend Line and the 20-Day MA lie.

Here's today's chart for Commonwealth Bank.



CBA finished below its opening quote (see the dark down side on the candle). That came after a gap up opening and an intra-day rise in the price. So there was definitely selling going on into the day's action. These might just be the early birds taking their well-earned profits. But it shows that the sentiment is not all on the side of the bulls.

Indicators are still well down - so there's likely more upside. But the further it goes up - the more embolden will be the bears. Maybe I'm being a bit pessimistic - I hope so. But I have to read it as I see it.

I think we're due for some consolidation or a bit of a pull-back. That's a very short-term view. Events overnight in Europe and America could easily dissuade me from that position.

Woolworths reports tomorrow.

RB