The local market hit an all-time high today. A sign of strength with a lower close is perhaps a tiny hint of further consolidation ahead. The tension between the US and China over rare earths could lead anywhere. On the other hand higher than expected local unemployment numbers opens the door for the RBA to cut rates.
Interesting to see that the Dow Jones Index moved below the trend line and has now retraced to touch it intraday. The US government shutdown has delayed the release of important economic data. When will all that hit the news and perhaps HIT the market is anyone’s guess?
With China rumoured to be pumping money into Malaysia their stock market may have some kind of a re-rating. Time will tell.
Small companies have been leading the charge since the April low with the Small Ords up around 44 percent against the main index up around 26 per cent. In the run up into the global financial crisis the Small Ords gained around 180 percent in the previous year.
Some locally listed rare earths stocks have been going ballistic. Lynas has been leading the way.
Arafura has doubled in the past 2 weeks.
Copper stock Sandfire has seen a downgrade by some brokers as price gets ahead of the fundamentals.
Some defence type stocks are coming off the boil like shipbuilder Austal. Some fund managers see high PE stocks as more vulnerable during any downturn.
Droneshield has moved down more in percentage terms in the current down move than the move before. Is that a sign of weakness?
The Uranium ETF URNM looks to be holding above the recent break out zone.
Pro Medicus looks to be making a bullish flag type pattern.
The price of gold has had a stellar run the last few weeks. Historically such a run up has ended with around a 20 per cent correction in price in the shorter term. Will this time be different?
Inflation erodes real purchasing power and returns.
Saw this on the web. An interesting interpretation of what is happening to bitcoin at the moment.
One way of looking at the gold chart longer term gives an ambitious future price of around US$5,745 using an equal range target. Just sayin.
Disclaimer: The commentary on different charts is for general information purposes only and is not an invitation to trade. Trading is risky and individuals should seek Professional counsel before making any financial decisions. Many thanks to Incredible Charts.com software for most of the charts used in the column. Cheers Charlie.
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