By Chris Becker
After last nights strong move in Europe and US markets, and then the French downgrade whammy, Asian markets were mixed today, with the ASX200 closing up 0.6% again to still be under 4400 points – for a full roundup, see below including technical analysis of the bourse.
The Nikkei 225 had a pause today, slipping slightly, while the Chinese markets remain duke it out with their plunge protection teams in full flight, the Hang Seng up slightly, while the Shanghai Composite is dicing again with support at 2000 points.
The Aussie dollar is up strongly down, above 1.04 against the USD – heres the daily chart first:
But here’s the weekly chart for perspective:
The US Dollar looks like reversing in the short term, heading back to support at 80 points:
Which is sending gold (USD) slightly higher, now just on resistance on the daily chart:
Australian Stocks
The main winners today were holes – the materials sector with the “twins” BHP and RIO putting on over 1%, while the divisions of Megabank exchanged places.
As for the market itself, having approached the closely watched 200 day moving average, its now moving back higher, but faces very strong resistance overhead at 4440 points. This will take a big leap by the financials sector to get over – as I said in our investment meeting on Monday at Macro Investor, its only financials holding up the market. Healthcare is stalled, energy is unwinding, materials will only follow Chinese markets, REITs have topped and need rate cuts to keep going, Telstra looks overvalued and industrials are getting waylaid by the strong dollar. If the RBA cuts next month, this might help consumer stocks….
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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