Origami Friday, page-4

Thursday Night Liqueurs. 10 November, 2016.

XJO up, +3.34%. Hmm. Not bad - too put it mildly.



Yesterday was a complete washout of the weak hands. And today the strong hands asserted themselves.
It wasn't all beer and skittles. The most interest rate sensitive sectors were down. Utilities -0.3%. Property Trusts -1.6%. Composite Bonds were also down -1%.

The most cyclical sectors were up. Materials continues to be the sector of choice (see the Weekend Report). It was up +5.7%.

Some stunning percentage rises occurred today. Why? Apart from the obvious tidal move in the market, QBE was up +11.82%. BSL was up +13.51%. These are large companies, not penny-dreadful stocks, but they're acting like minnows in our market.

OK. So - what do I think will happen from here on?

I'll be surprised if the recent lows aren't tested in the next week or so. That often happens after a wash-out. The weak hands - having thrown in the towel - then scramble to get back into the game. So we get a rally - driven by short covering and GMIAAPP (Get Me In At Any Price Punters). Then, once they're all in, the carpet gets pulled out from under them.

Good story?

I'll stick by that until proven otherwise.

In the short time, probably a bit more upside - but wait for the pull-back.

RB.