Maxi - nice to see you back. Now. Where's Chris Ford?
In America:
Dow Industrials +0.52% Dow Transports +0.68% SP500 +0.31% Russell 2000 +0.3% Nasdaq100 -0.12% Comment: A mixed day, on lower volume. The Dow 30 is consolidating at the top of the trend.
NewHighs/NewLows 202/15. NH>NL. The ratio of NH/(NH+NL) is at 93.1%. In the Do Not Sell Zone. These are bullish numbers.
Technical Comment on the Dow30:
The Dow finished at 13323.36. Support/resistance: 13055/13340 MACD Histogram. Above zero. Positive. MACD. Marginally above zero. Positive. RSI.9 is at 64.5. In a zone where pull backs can occur. Stochastic. 87.8. Overbought. CCI.14: +126.53. Overbought
The chart remains within the confines of a medium term up trend channel. The short term trend is up.
Not much has changed since yesterday. The Dow 30 continues to consolidate at the top of its trend. Although indicators are stretching into overbought zones, they can stay there for prolonged periods in a bull market.
Bell Wether Stock: Apple Inc.
Apple has been consolidating at recent highs for nearly three weeks. Whichever way it breaks should determine direction for the next couple of weeks. Apple is set to launch iPhone5 tonight (Australian time). An article on CNBC says that the new phone has the potential to add a quarter to a half a percent to American GDP. So it’s an event which will be watched closely. (Probably more important than the German Constitutional Court decision to be announced tonight – Oz time.) If the market judges the new iPhone to be oh hum, we could see Apple and the Nasdaq100 fall. If the reception is positive, we’ll no doubt see a good rise in Apple’s price.
Industrial Metals was up +0.31%. That’s positive but it looks like an undertrained 400 metres runner coming to the end of their race. The AUD/USD up strongly again +0.97%. US$ Gold was up +0.36%. BHP on the NYSE was up +2.01%. There’s nothing negative in those figures for Australia today.
German DAX.
The German DAX continued to power upwards last night, +1.34%. It doesn’t look afraid of the Big Bad Constitutional Court. CCI has risen to almost +300. That’s a bit too stretched to the upside. MACD is showing an strong negative divergence. But – you know the old story – the trend is up. Just be cautious – risk management should always be a priority.
(20min delay)