By Chris Becker
A bullish day on Asian equity markets, coming off solid leads overnight. The ASX200 was up at first light and stayed there all day – even though monthly non-farm payrolls (unemployment rate) is out tonight in the US. This shows a lot of confidence – the market was up almost 1% and closed above 4550 points. Check out a full roundup by sector including some the top 8 stocks and some technical analysis below.
The Nikkei 225 had a scratch day alongside the Yen, while the Shanghai Comp is having a stonker, continueing its strong rebound above 2000 points:
The Aussie dollar has once more, but as I said yesterday it is running at very low average true range (ATR) levels – the lowest in 5 years on the 20 day ATR.
The US Dollar Index and Gold (USD) are being weird again – both up slightly today, maybe just noise ahead of the NFP, but both have bounced off respective support:
As you can see across the board it was a strong day with all sectors gaining, healthcare in the lead again. The best of the ASX8 – the top four miners and banks – was the runt of the litter, NAB, up just over 1%, trying to free itself above its own 200 day moving average, while the rest of the pack surge ahead:
The market is close to revisiting the previous high but with financials way overbought, its up to materials and Chinese markets to get the bourse back above the KC Signal level and then on its way to 5000. As always, take leads from the S&P500 before getting too carried away – but this does look mightily bullish. The permabulls must be very happy…
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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