Weekend Charting and Chat. 21/11 Mar (aka Doom&Gloom), page-6

This is a bearish market. This is a market for traders. Investors - sit out.

Strategy - sell rallies.

XJO down this week -13.05%.

The 50-DMA on the XJO is now below the 200-Day SMA. That's a long-term sell signal. Sell rallies.

Tuesday saw a strong rally - but no follow-through buying occurred. That's been typical of this bear market.

Cumulative New Highs Minus New Lows for the Australian Market continues to deteriorate:

This chart changes slowly. But when it changes - it should not be ignored. It is currently bearish. Conservative investors should wait until a positive 3/10 MA x-0ver occurs.

Some signs appearing that the rate of increase in New Lows is slowing. That's not much solace but it could signal a turn-around could be coming:

Until we see the 5-DMA of New Highs cross above the 5-DMA of New Lows, investors should stay out of the market.

Next, a graph of stocks above key MAs, 200, 50 and 10:

The % of ASX100 stocks above the 200-DMA is now down to 7% (blue line). Until we see this figure cross back above 20% - investors stay away.

Short-term, despite the big fall in the XJO this week, the number of stocks above the 10-Day MA did improve from 9% to 16%. So there has been some short-term improvement in internals.

Stocks above the 10-DMA are:

AST, SKI, BXB, CIM, AMC, FMG, ORA, ASX, NHF, MPL, COH, XRO, A2M, TWE, COL, WHC.

Notably absent from this group are any stocks from the top 10 biggest stocks in our market.

All sectors are now negative on the Cumulative Momentum Index. Last week, Health was still positive, but this week, Health also succumbed to the coronavirus (please forgive that awful pun):

Consumer Staples (XSJ) has now supplanted XHJ as the best performing Sector (relatively).

Here's the CMI Chart for Large Cap stocks with low volatility:

All stocks are now showing negative Cumulative Momentum, so there are no stock picks this week.

Only one ETF qualifies - Gold (POG in Ozzie Dollars). GOLD.AX remains in the list for the third week in a row. It was up +1.8% this week.

That's it for this week.

Scott Morrison has, this morning, announced a massive stimulus for the economy. We'll see how the market reacts tomorrow.