Trading Day

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The S&P/ASX 200 Index slipped again today, starting the week slowly and on very low volume, with mainly positive leads from other Asian markets. The bourse finished down 14 points or 0.3% at 4225 points:


As I explained this morning, the market needs to clear the 4300 area (the upper breakout of the symmetrical triangle pattern on the weekly chart and above the 200 day moving average) to continue as a technical bear market rally, with a probable target up to 4700 points, the mid-point of the higher trading range from 2009-mid 2011.

Japan’s Nikkei 225 finished flat at 8765 points, the volatile Hang Seng broke through 20000 points on Friday but alongside the Shanghai Composite is closed for China New Year holiday.

The AUD remains strong, currently trading at 1.0485 against the USD, whilst WTI crude continued to weaken, down 33 cents to $98USD a barrel even/

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Gold rebounded in the Asian session, up $8, currently at $1672USD an ounce or $1594 AUD per ounce.

Movers and Shakers
Not quite a bath of blood, but all but two sectors ended in the red, with healthcare and IT taking the biggest hits, down nearly 1%, whilst industrials and utilities were up weakly.

The banks remain weak with no clear direction, with ANZ down 0.1% still refusing to breaking out of its bullish rectangle pattern; the big brother of banks, the Commonwealth (CBA) was equally flat, down 0.2% and still looking for a good breakout above $50 a share, but no dice yet.

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National Australia Bank (NAB) finished flat as well down 3 cents, whilst Westpac (WBC) was at least moving somewhere, this time down a full 1%

Macquarie (MQG) was a standout, building on last week’s move, up almost 3% and about to breach above $25 a share:


Healthcare favourite Cochlear (COH) slipped almost 1% again but still remaining on trend (just) whilst its “twin” CSL lost similarly, remaining in a neutral stance for now. Telstra (TLS) was flat on very light volume, forming a small pennant on the daily charts, effectively stuck in neutral as well.

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To the resources, where BHP Billiton (BHP) slipped, last week’s breakout above resistance at $37 a share, under threat, down 0.6%, whilst, its “twin” Rio Tinto (RIO), was actually up 0.5% and remains in a good short term uptrend, with resistance at $70 per share to clear soon:


Gold miner Newcrest Mining (NCM) slipped again as gold priced in AUD goes nowhere for now, whilst Fortescue (FMG) was proving volatile again, down nearly 4% and reversing Friday’s gains and more, still in a medium term bearish stance.

To finish out the ASX8, Woodside Petroleum (WPL) fell almost 1% but still remains flat, trying to climb out of its sideways funk. Finishing up with the defensive stocks Wesfarmers (WES) was flat, still hobbling around $30 a share, whilst Woolworths (WOW) fell nearly 1% again building on the breakdown on Friday, well below support at $25 per share.

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A quiet night for overnight data on the US and Euro markets, as markets remain cautious around the continuing saga with Greek debt negotiations, the overnight futures slipping for the ASX200, down around 5 points to 4222 and other markets mixed.

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