Trading Day: 13th July

The S&P/ASX 200 jumped slightly on the open, after digesting a poor performance of overnight equity markets. The market is now .47% or 21 points higher just after midday to 4516 points.

Other Asian markets have also up slightly, with the Nikkei 225 steady at 9926 points, and the Hang Seng up 1% at 21,882 points.

Other risk assets are mixed, with the AUD pegging back some losses, now at 1.0621 against the USD, whilst gold consolidates after last night’s attempt to breach the record high, now at $1566 USD an ounce. WTI crude is down 0.5% to $96.92 USD per barrel.

Movers and Shakers
It’s mainly a green picture across the board. The banks are being bid up, and even Macquarie (MQG) is up slightly (1.1%). News Corp (NWS) is still suffering, down 2%. The banks are all up between 0.2 and 0.8% – not massive gains by any stretch.

BHP is up a little at $43.56 but RIO has fallen, down 0.55% at $80.96, now back in a downtrend.

The winners amongst ASX200 stocks include Bluescope Steel (BSL) on bottom picking (I’ll leave that to the monkeys), up 5% with other resource companies also taking back some losses – Sundance (SDL) up 4$, Murchison Metals (MMX) up 3%.

The biggest losers include Beach Petroleum (BPT) down 5.5%, Envestra (ENV) down 4% and of course News Corp (NWS) as previously mentioned, down 2%

Daily Chart
The daily chart shows yesterday’s “dead dog rollover” is pausing – possibly to lap up some milkie wilkie’s (QE3 etc) with support at 4500 points holding the market up barely.

The hourly chart (h/t The Avid Chartist) shows a possible double bottom forming, at just below 4450 points, but I agree with Avid – in the context of the overall trend, it’s pretty weak (a much stronger pattern is a reverse head and shoulders, which usually forms over a few weeks before a new rally, not a reversal over several days)

My long term system is still displaying “don’t go long here” signals with a weekly close below the 4475 point level changing my market stance to “bear market”, from “sideways market”. Interesting times – and yes, I am still short. Give me a reason to be long?

Daily candlestick of the ASX200 - note support just below 4500 points

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  1. The ASX 200 is performing about as well as the Chinese market over the past 18 months.

    Wonder why that is?