Your Fault... - Friday, page-3

Deja Vu. Thursday Evening Liqueurs, 22 october, 2015.

Yes - it was Deja Vu all over again. Our market was down substantially in early trade, just like yesterday; then decided things were really OK, and surged to finish in positve territory. XJO up +0.3% on average volume.

Here's a Heiken-Ashi Chart for the XJO:



This chart simply shows an indecisive market.

Here's the Daily Sector Performance Chart:



Gold Miners Index was the worst performer, continuing its recent weakness.

Energy, despite falls in the U.S. Energy prices, had a stellar day - up +3.1%. That was largely due to a surge in the price of Santos +16.18%. There's a bit of action in the Oil and Gas section. Woodside recently made a tenative offer on Oil Search. Other stocks took off hoping to get a bit of a shine off the glow coming from these potential take-over bids. Santos said NIX to the offer.

Utilities (+1.2%) and Property (+1%) also had good sessions. These are interest rate sensitive and are probably receiving some love on the speculation of an interest rate cut by the Reserve Bank. Bonds also received a little prod higher. IAF (an ETF for Bonds) was up +0.5%.

The following bar chart shows the medium term and long term Relative Strengths of the 20-Leaders (blue-chip stocks).



I've circled stocks where the medium-term RS is above zero and doing better than the long term RS. This suggests that there is some resurgence of interest in these stocks.

Five out of the seven stocks are Financials (ANZ, CBA, IAG, NAB and Suncorp). IAG is the strongest of these.

The other two stocks are Rio and Woolies.

Woolies will be reporting in a few days (29 Oct.) on its 1st Quarter Sales. That report will be closely watched to see how it is going in its efforts to turn around its recent relatively poor performance compared to Coles.

RB