ASX Shares Daily – December 10th

By Chris Becker

A bullish day on Asian equity markets, although the ASX200 squandered most of its gains later in the arvo and had a scratch day.  Check out a full roundup by sector including some the top 8 stocks and some technical analysis below.

The Nikkei 225 also had a scratch day alongside the Yen, while the Shanghai Comp and other Chinese equity markets continue their bullish run. The Aussie dollar slipped a little today, without much data to react to, but as I said last week, it is running at very low average true range (ATR) levels – the lowest in 5 years on the 20 day ATR.

Why is that a problem? It usually means volatility is ahead…

The US Dollar Index and Gold (USD) are being weird again – both up slightly today:

 

Australian Stocks

If it wasn’t for materials stocks following the Chinese equity markets, it would have been more than a scratch day for the ASX200. Here’s the materials sector (i.e BHP and RIO) against my preferred index to trade – the Hang Seng China Enterprises Index (HSCE) which leads materials:

 

The market is trying to revisit the previous high but with financials way overbought, its up to materials to get there:

This free daily update should be read alongside Live Trades articles, published every morning at Macro Investor, and placed in context with the longer trends and macro drivers within the overall technical picture,  where former “Trading Week” readers will find it reborn as “Technicals“, published 8.30am each Monday morning. Chris Becker is an investment strategist at Macro Investor, Australia’s leading independent investment newsletter covering stocks, trades, property and fixed interest.  A free 21-day trial is available at the site. You can follow Chris on Twitter.

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