snippets from my weekend report, page-5

Note about materials index though - RIO and BHP account for a large part of it and a lot of the fall was due to RIO going ex-entitlement. This would also have weighed on BHP as investors sell down other holdings to take up their entitlements.

Still - it all counts. The market has been diluted by 10% or more in the last few months by cap raisings and rights issues and there seems to be no end to them (particularly in the property sector). This has raised the market's overall capitalization but shouldn't affect the index - hence there is less value in the market (all else being equal).


Thanks for the summary redbacka

"Conclusion: This suggests that XAO/XJO is in at least a counter-trend correction which may turn into a major trend reversal. "

Are you assuming the primary trend is bullish or bearish here (prior to reversal)? It could be viewed as a (bearish) correction within a bear market rally, a resumption of a bear market after a correction, or a pullback within a new bull market I guess - which one are you referring to?