A blessing of unicorns jumped across the rainbow fields of the S&P/ASX 200 Index today, but were taken out by short-statured hunters on a grassy knoll, as the market closed down 3 points to finish at 4214 points.
The 4200 point level of resistance remains breached, with volume building and above the 20 day moving average (pink line in chart below), with the next target of 4300 points still to be cleared before a new bear market rally can be called:
Other Asian markets escaped the rainbow massacre, with Japan’s Nikkei 225 up 1% or 89 points to 8639 points, the volatile Hang Seng currently up 232 points or 1.2% to 19919 points whilst the Shanghai Composite is also up, currently some 30 points or 1.3% to 2296, building on its recent gains and trying to breach resistance at 2325 points.
The AUD was flat in response to the unemployment figures, currently trading at 1.0384 against the USD, whilst WTI crude put on a good bid, up 88 cents to $101.47USD a barrel.
Gold also saw some action, although speculation was rife on why it went up a measly $5 a share (various outlets contend because on IMF something or other? how about it went up because it has been going up?), currently at $1665USD an ounce or $1602 AUD per ounce.
Movers and Shakers
Mixed to bad sectoral results today, with IT, telecomms (i.e Telstra) and real estate sold off, whilst materials and the Small Ords (the best value IMO) the only positive standouts.
The banks were mixed, as the financial sector itself is replicating the broader market (as it would since we only have Houses and Holes it seems – in fact, saw my favourite market economist (sic) brashly boasting that his bank was the 10th largest in the world!!!) and still stuck in a bear market. February earnings season awaits my pretties….
ANZ was flat, still refusing to breaking out of its bullish rectangle pattern, the big brother of banks, the Commonwealth (CBA) was flat, breaching $50 a share, then coming back down below again. National Australia Bank (NAB) was actually up and moving, up 1% but still in a holding pattern, whilst Westpac (WBC) was flat also, still lolly gagging along at support at $20 per share:
Moving on, and Macquarie (MQG) saw some big bids – on something – up 2% but still flat on the charts, needing to breach $25 a share before getting excited:
Healthcare favourite Cochlear (COH) rebounded strongly, up over 2% and remaining on trend whilst its “twin” CSL came back up again, some 0.5% but not moving much overall. Telstra (TLS) cracked, falling some 1.7% and dicing with the $3.30 support level but still in a medium term uptrend.
To the resources, where BHP Billiton (BHP) was up again, almost 1% and now above resistance at $37 a share, where I said a breakout would be very bullish for the stock, and the broader index – this still holds, but I want to see the financials bid up too before putting my unicorn hunting rifle away (and a significant close above $38.50 before a bear market rally is confirmed):
Meanwhile, its “twin” Rio Tinto (RIO), was up only slightly, still in uptrend, gold miner Newcrest Mining (NCM) slipping whilst Fortescue (FMG) was also flat, after shooting ahead nearly 5% yesterday, alongside other iron ore stocks that have rallied hard this week.
To finish out the ASX8, Woodside Petroleum (WPL) went into reverse, possibly on its production report (which was good it seemed), down nearly 2% but still in a short term uptrend.
Finishing up with the defensive stocks Wesfarmers (WES) slipped slightly, still going sideways, whilst Woolworths (WOW) fell over 1%, breaking its short term uptrend, but not support just above $25 per share:
