Ripper. Bewdy. Bonzer. Last Call. Monday, 22 December, 2014....

Ripper. Bewdy. Bonzer. Last Call. Monday, 22 December, 2014.

Words fail me. So I’ve resorted to some good old Ozzie slang. Today was extraordinary – by any measure. XJO up +1.94%.

Here’s the Chart for the XJO:



After the pull-back in early October, we saw a great rally off the lows. Piffle. In three days, we’ve gone up as much as the October rally did in ten days.

Today’s UpVolume/DownVolume Ratio was >80%. We rarely see figures like that in Australia. (In America, >90% days are not uncommon.)

The strength was across the board.

Here’s the Daily Sector Performance Chart:



The only sector which wasn’t up +1.5% or more was stodgy old Utilities – up just +0.2%. It tends to under-perform in bull markets and out-perform in sideways and down markets.

Turnover was around average, but volume was exaggerated, mainly due to lots of money pouring into small cap miners – particularly Gold Miners.

Looking back to the XJO chart – the down trend has now broken to the upside. Even lagging charts like Renko and Point and Figure are on buy signals. (I mentioned these in the Weekly Report on Sunday.)
Indicators are still not yet overbought, unless you look at very short term indicators. The chart is now at a major horizontal resistance area, so we might see some sort of a pause here – but momentum is so strong it’s going to take a lot to stop this.

I think we’ll continue to see more upside in the short term – and this may be setting up a great bull rally into April. (Famous last words?)

This is probably my last “Last Call” (Evening) post before I go away. I’m off early on Wednesday morning and will probably be too busy tomorrow night for an Evening post.

Tomorrow morning’s report will be put up as usual.

Redbacka