XJO finishes mid-range. Thursday Evening Liqueurs. 17 September,...

XJO finishes mid-range. Thursday Evening Liqueurs. 17 September, 2015.

XJO up today +0.94% but finished mid-range. Volume was about average.

The Index was up strongly in early trade but gave back about half in the afternoon. Short term traders seemed to be happy to book profits after two up days and the FOMC meeting ahead of them.

Here's the chart:



XJO remains slap bang in the middle of its trading range.

Long term, the Index is consolidating at the lower end of its down trend. Such consolidations tend to break in the direction of the prevailing trend (i.e., in this case, to the downside). It doesn't have to do that - it can go the other way. It is unwise to jump the gun on such consolidations.

Here's the chart for the relative strengths of the various sectors and industry groups:



The strongest sectors are Utilities (XUJ), Industrials (XNJ) and Materials (XMJ). If you must trade, those are the best sectors to look for candidates.

In the Industry groups, Gold Miners is the stand out.



XGD has been strong relative to the XJO. It is not yet oversold so there is possibly more in this yet. The uptrend is also not particularly strong - just stronger than the XJO. So this requires caution.

If you must trade the Goldies, look to buy the dips in the Gold Miners. But be careful.

RB