Tuesday Evening Liqueurs. 23 August, 2016. XJO up +0.7%. Here's...

Tuesday Evening Liqueurs. 23 August, 2016.

XJO up +0.7%. Here's the Candlestick Chart:



The headline result sounds good - but, looking under the hood, reveals some doubts.

1. Advance/Decline Ratio finished below its mid-line at 48.8%.
2. AdvancingVolume/DecliningVolume Ratio finished below its mid-line at 48.3%.
3. VIX which usually moves inversely to the market was up +3%.
4. Small Ordinaries which has been the best performing index on the ASX was down -0.1%.

It is also significant that the market sold off in the afternoon trade - down about -0.4% from the intra-day high on the STW (tracking ETF for the XJO).

So, I'd take today's bullish figure of +0.7% with a big grain of salt.

My favourite focus in recent weeks has been the energy sector. Today it was the only sector down -0.4%.



Well, XEJ went back to support today where it found a modicum of intra-day buying.
In the Weekend Report, I noted that we could expect this. If we now see a bounce off support some of the larger Energy stocks come on to the radar.

One blue-chip going ex-dividend tomorrow is TLS. On current figures its ex-dividend tomorrow should see a fall in TLS of -2.8%. If it is less than that, it will be a bullish result.

Big companies reporting tomorrow include: Wesfarmers, Qantas, Blackmores. All of those will be watched carefully.

Meanwhile, back at the ranch (or, maybe, the Grand Tetons in Wyoming) preparations are being made for the grand meeting of Central Bank minds that starts on Friday at Jackson Hole. That's a doomsday name if ever I heard one. But maybe Grand Tetons has a more positive ring to it?

Anyway. I can't see much change in markets until that talk-fest is out of the way.

And - in case you've been wondering - no, I'm not presenting at Jackson Hole this weekend - I have more important priorities.

RB.