Finally some movement in right direction
Yes MLS gained 5 pips to finish on 5.3c. Our volume was similar to last few days, just over 1m shares traded
ASX Li stocks were in the green zone. Of the 43 stocks that I track, average gain was around 7.5%
What next -
After a strong night on Friday at US markets, we were supposed to start strongly. And we did that. Most stocks made some good gains in early morning trade. As I had mentioned on the weekend report, there was a chance that not all stocks will be able to keep all the gains, but still it was a strong finish and many stocks finished near the day's high.
So is this a reversal or a dead cat bounce? Still early days, but the bulls have embraced the opportunity given. Many came out of the closet and went for the stocks. Many charts are suddenly looking good, hence we saw a lot of punters get in. Although its looking good, we need more data for a confirmation of reversal.
Many analysts have still not given up recession talks and predicting stocks prices may much lower before they turn. But some are also now thinking that inflation may have peaked, commodity prices are coming down, oil is down, etc - so inflation could be lower. But prices coming down also is a signal for recession. So a catch -22 type of situation. For many ordinary punters its too complex, what we want is simple answers - are we going up or down. So no consensus at this stage.
I have stuck to my strategy of being light till more data or higher markets confirm we are going up.
Tonight is very crucial period. US indices made good gains between 5.5 to 7.5% gain last week. And a bumper Friday. So probability is for a red. As long as its a small red, it may be considered healthy and continuation of forward movement, with tomorrow ASX stocks going sideways. But DOW does not like small red/green. And also likes to surprise. It could surprise us with a big red. But another surprise could be a big green, when most are not expecting. Lets hope it happens that way although probability is low, it will propel us more forward, and then later if there is a fall, we will still be ahead. All the best
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