Well done redbacka. The most informative post on the HC XJO...

Well done redbacka. The most informative post on the HC XJO forum every week for me.

I like the sector analysis. Like me, you are also aware of the needed caution for going long on stocks trading below a 200-day moving average (simple, weighted, or exponential). As U.S. trader Larry Tentarelli says, "Bad things happen below the 200-day MA". (ref-1) XJO stocks DMP, HSO, and TLS are three of many examples. That's why I won't even consider buying a stock unless it is above the 200-day MA. The big institutional traders are also aware of this basic TA rule. EHE (Estia Health) was a recent purchase of mine because it went from stage 4 downtrend (below a declining 200-day MA) to stage 1 accumulation (just above a flat 200-day MA), to stage 2 uptrend (above a rising 200-day MA). EHE is more bullish that HSO for this reason. BKL (Blackmores) was another one of my trades that recently went from stage 1 to stage 2 above a rising 200-day MA.

The big 4 banks (ANZ, CBA, NAB, WBC) are holding back the XJO to a certain extent. Their lack of volatility is why I no longer trade the index.

1. https://52traders.com/larry-tentarelli/

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