Drink Wine - Thursday, page-2

Wednesday Evening Liqueurs. 17 February, 2016.

XJO finished down in choppy trade, -0.57%.



Today's pause in proceedings occurred right on the expected resistance level. There are three resistances converging at this level: down trend line, horizontal resistance, 20-Day MA resistance. That's powerful stuff.

If our XJO can move above that, we've got a powerful move on our hands. It hasn't happened yet.

Energy, today, was consistent in its volatility. It was the worst performer today, -4.1%.

Best performing Index today was again GDX - Gold Miners, up +1.8%. That's a bit of a surprise as GLD (U.S.$) was down a hefty -3.03%. The price of Gold Miners' stock tends to be leveraged to the POG. If POG falls, Gold Miners tend to fall further (and vice versa). This bears watching. It's probably an aberration, and XGD will continue falling to at least the middle of the three-line Standard Error Channel - and more likely to the lower edge in the passage of time.



Risk-On or Risk-Off?



Above is a rolling One-Month Sector Bar Chart (smoothed using a 5-Day MA).

Utilities (XUJ) continues to outperform the XAO. Bonds (IAF) continues to outperform XAO.

This remains a Risk-Off Market. Be cautious.

RB.