Weekend Charting and Chat. 14/15 Dec.

Yesterday in Australia:

XJO up moderately +0.46%.

The XJO is in a sideways consolidation. This could go either way. Three out of four indicators are giving buy signals. The Hull MA 20 and 80 are both negative which suggests a "sell-the-rallies" strategy. Short-term trend remains negative, but medium-term and long-term trends are both positive. Let's see how this pans out.

Drilling down into the data, we see that there was a rotation out of defensives into riskier sectors. The movement is quite stark:

Defensive sectors are XUJ -0.5%, Health -0.3%, Consumer Staples -0.79%, Telecommunications +0.19%, Property -2.24%. But, XJO up +0.46%.

I think that rotation is bullish.

Overnight:

Dow Jones +0.01%. SP500 +0.01%. Nasdaq +0.2%. Small Caps -0.67%.

EWU, the American ETF for Great Britain, went ballistic +2.71%.

SP500:

The upside trend remains positive on all time frames. Indicators are all on "buy" signals. Stay with the trend.

Commodities:

Commodities Index +0.51%. Base Metals -0.66%. Energy +0.62%. Gold +0.45%.

VIX:

Despite the flat finishes in the major U.S. Indices, U.S.VIX fell sharply - which is bullish for stocks.