Squirrel Appreciation Thursday, page-3

Wednesday Evening Liqueurs. 20 January, 2016.

XJO down -1.26%. And that is a new 52-Week Low. As I mentioned in the Weekly Report on Sunday, it's difficult to recommend a stock or index which is making 52-Week Lows. Eventually, of course, mean reversion takes over. But we're not seeing that yet.



When I look at the fall today and then look at the Financial Sector results, I'm surprised that the fall wasn't a lot more. So there were a lot of stocks doing very well.

Here's the XXJ chart (Financials X-Property):



This chart was down -2.54%.

ANZ was particularly hard hit -4.43%:



In the Weekend Report, ANZ was one of the stocks I listed as "avoid".

Today was a particularly odd day. Five sectors were up, five sectors were down. Even/Stevens. But the two most important sectors (Financials -1.9% and Materials -2.4%) were both down substantially. That accounts largely for the big negative result today.

I have a rather esoteric "bottom finder" - the number of stocks unmoved on disallowed - but traded. I find that this group when below 300 stocks is usually a reliable signal that a bottom has been found in the market. Today, the unchanged stocks (although traded) reached 301. That is obviously a low figure. It doesn't meet my, rather arbitrary figure of <300, but it is close. I'd like to see it a lot lower.

Another good "bottom" finder is the volume traded figure. This is always fraught with difficulties, as so many different factors affect volume traded. But, today, it did reach significantly above the 20-Day Average.



Very high figures on this chart usually relate to Options Expiry Days. Today's volume reached 128% above the 20-Day Average Volume. That's not into capitulation territory - but not far off. If this gets up to 140% or 150% in the next couple of days - you can buy with your ears pinned back. (Ok - that's hyperbole - take it with a grain of salt.)

RB.