Mixed session in Europe and America. Tuesday Morning Joe. 20 October, 2015.
Major Indices, Europe and America
Europeans were mixed, but the technical picture looks promising. Germany 0.59%, UK -0.4%. France +0.03%, Italy +0.37%. The four Europeans are above the 50-Day MA and the 20-Day MA seems likely to have a positive cross above the 50-Day.
DJ +0.08%. SP500 +0.03%. Nasdaq +0.38%. New York Composite -0.29%, Russell2000 0.17%.
The Americans were also mixed with the Nasdaq up modestly, the New York Composite down modestly, while the other three were more or less flat. Like the Europeans, all five Indices are above the 50-Day MA and the 20-Day MA looks likely to cross above the 50-Day in the near future. On the DJ, there's just a smidgin between the 50-Day and the 20-Day, so it will almost certainly have a positive x-over. So long as the Index doesn't then fall sharply, everything will be looking rosy. %R is teetering in the overbought region, so we might see a bit of downside in the near future.
Friday in America had some unusual features. It was Op-Ex Day. Op-Ex Day is generally a narrow range, high volume day. Well - we had the narrow range, but volume was generally on the low side. In four out of the five indices, volume was the lowest in three days. Very odd. I'm not sure what to make of it. hmmmm.
Here’s a regular candle stick chart for the SP500:
SP500 was well down in negative territory soon after the opening. It then zig-zagged, up, down, up to finish just in positive territory. The afternoon session was strong - so that's a positive. The MFI is looking stretched to the up-side. It is above both the overbought level of 80 and the upper Bollinger Band.
Accumulation/Distribution, however, is very strong. It is now higher than it was at its peak in May. So smart money seems to be betting on a solid rally. Any dips are likely to be bought.
H/L Ratio remained at 71.9% with New Lows at a benign 25.
US$ and Commodities:
US$ (UUP) +0.28% and the commodities went down. Base Metals -1.38% Energy -3.05%. PMs -0.55%. Gold -0.42%. Iron Ore -0.2%. Those figures will put pressure on our Miners and Energy stocks today.
Oz Stocks in NY:
Resmed has continued its stellar performance +2.46%, despite a weakening AUD, -0.17%.
BHP -2.3% and Rio -1.56% felt the effects of the poor Metals prices.
Westpac resumed trading after a three day trading halt. It was playing catch-up with the other three big banks.
Other results: ANZ -0.17%, NWS +0.61%, EWA -0.87%.
All of that suggests we'll have a soft opening today. I can't see us making much headway, but you never know. Today, the Reserve Bank will release its minutes from its last meeting - they'll be analysed to death looking for clues about interest rates. That could have some impact on trading today. Weekly consumer confidence figures will also be released today.
(20min delay)