ASX Shares Daily – November 16th

By Chris Becker

A balmy day here in Dog’s own country, but only the Nikkei saw some heat, the rest of Asia including our little corner continuining to slip. The ASX200 closed down 0.3% today – for a full roundup, see below including technical analysis of the bourse.

The Nikkei 225 gained 2% again – all because of the Yen – funny what a weaker currency can do, hey?

The Hang Seng gravitated but is finally in the black, while the Shanghai Composite is teetering with support at 2000 points – the Plunge Protection Team in full flight:

The Aussie is another half a cent. Is there a deeper move here? Hmmm…always look on the other side of the coin first. The USD looks like running out of puff, in the US Dollar Index at least, although gold too is slowing down:

Australian Stocks

Go industrials (yes, I’m long), down with financials (yes, I’m short)! Discretionary stocks are seeing some bids, including that old bug-bear JB Hi-fi (JBH) which has closed above its 200 day moving average – again – as the No.1 shorted stock is being covered on rising volume. But here’s a longer term look at the discretionary sector with the RBA rate cuts superimposed. Keep cutting Glenn!!! (says the consumer sector….)

As for the market itself, it’s now approaching the closely watched 200 day moving average, a cross of that is required before a full blown correction – down to 4000 or so points – can be called:

As always, watch the European and US close tomorrow morning and read Macro Investor Technicals to get the bigger picture, and have nice day.

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 at Macro Investor. 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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  1. ceteris paribusMEMBER

    “A full blown correction?” Who knows- but always a possibility. No time to have 50% plus equities in super.

  2. “Discretionary stocks are seeing some bids, including that old bug-bear JB Hi-fi (JBH) which has closed above its 200 day moving average – again – as the No.1 shorted stock is being covered on rising volume”

    But the size of shorted volume has barely changed, stuck arround 21-22% range as late as last Monday. The short covering has barely begun, if at all.

    With their amazing cash flow, JBH could totally extinguish their outstanding debt by the end of this FY. Heck, at the current share price, they could buy back more of their unwanted shares.

  3. BTW, PDN has fallen to about 0.5 NTA level, similar to the rock bottom 0.5 NTA level experienced by ERA. Time to buy PDN, no?

    With the Megatons to Megawatts Program scheduled to expire next year, the supply of uranium is guaranteed to fall. Granted, the demand has also fallen since Fukushima, but it is difficult to see that the demand-supply balance can further tip to consumer’s favour. Who knows, maybe Cameco might take over PDN with premium.

    Talking of energy, ORG also fell hard this week. Now the divident yield is better than 5% fully franked. There is enery glut for now, due to unconventional gas, but in the long run, there is always demand for energy. It is more “staple” than the “consumer staple” sector.