Single Task Thursday, page-2

XJO was down early in trading and then recovered to finish flat.  +0.05%.



Clearly, the XJO is struggling at the 20-Day MA.

The trend channel remains up – stay with the trend until it changes.

The Australian VIX has been down (positive for stocks) eight days in a row.  That seems to be stretching the friendship just a little.

We’ve seen some semblance of a change in the relative strength in sectors.

Materials, which has been a mainstay of our market, may now be underperforming.



The lower panel shows the relative performance of Materials against the broad market.

Of course, any under-performance is counter-balanced by an out-performance in other sectors.

To see the outperforming sectors see the bottom panel in the following charts:

XUJ



XIJ:



XHJ:



XSJ:



Clearly – the sectors that are outperforming are defensive sectors.

That seems to be that it’s best to take a risk averse stance.

RB.