xjo wednesday, page-79

Hi ZT,

Yes - the lack of high volume on XTL is interesting.

I tried to do a bit of tracking to find just where the high volume was coming from.

A bit was in the Small Ords - probably a dumping of small gold miners.

Another major contributor to the volume today was Consumer Discretionary. Today's volume was close to 200 Million Shares traded. Given that the only previous day when volume was greater than 100 million was back on 21 March - an Options Expiry day, you get a picture of something special happening today. Back on 21 March the volume was only 132 Million. So you get some idea of just how out of kilter things were today in Cons.Disc. Given that Cons.Disc is up nearly 40% since September, 2012, it looks like something is up in that area. Seven West contributed just over half of that volume going through in Cons.Disc today. It was down nearly 8% today. Maybe it's just a one day wonder - but something to keep in mind.

Chart for XDJ:

No stock from the Cons.Disc. sector is represented in XTL.

Consumer Discretionary, along with Financials, has been one of the main stays of the current bull rally in Australia.

But - here's the long term chart for XDJ:

The current month hypodermic needle at major resistance is a caution. We still have over a week to go in May - but if the current candle remains largely unchanged - or deteriorates - we have a significant warning on this sector.

It won't matter much unless the next month is down - but something to watch.

XDJ is a "canary" - it sings when the market is healthy - and flops at the bottom of its cage at the first smell of trouble.

Redbacka



XDJ tends to be a "canary in the coal mine" - one of the first to fail in a bull market. It is also one of the best guides for failures in bear markets.