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Weekend Charting and Chat

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    OpEx Day. Morning Joe. Saturday, 22 November, 2014

    OpEx Day is typically a narrow range, high volume day – unless some unusual economic news is released. Well, that’s what happened this time. China announced interest rate cuts. Meanwhile, in Europe. Draghi, the Head of the ECB, promised he would take whatever steps necessary to combat deflation. Note: he didn’t actually announce any specific action. Not to worry, the European bourses took off, German DAX up +2.62%, French CAC up +2.67%.

    That set the scene for the American markets to open higher – which they did – much higher. The SPY (tracking stock for the SP500) opened up about 1% above the previous day’s close – then sold off.

    Here’s the SPY Chart:



    This chart sets up the possibility of a pull-back next week. RSI.9 is extremely overbought. CCI and TSI are both in the very high range. MACD Histogram has been falling – so momentum is staggering. MFI is falling suggesting that some of the smart money has been selling out. TRIN on the NYSE finished at 0.56 – below 0.6 (especially at the top of a long up trend) is often a catalyst for a short term sell off – too much exuberance, nobody left to buy.

    The China and ECB announcements also had a big effect on Commodities. Copper up +0.85%. Nickel up +1.82%. Zinc up +2.18%. The Copper ETF (CU), which tracks companies involved in the copper mining industry, was up a massive +4.19%. Crude oil futures were up +0.87%, but showed some intra-day selling pressure.

    Anything relating to the China trade was generally much higher, so our big miners in NY skyrocketed.

    Oz Stocks in NY:

    BHP +3.97%. Rio +4.86%. Westpac +0.39%. ANZ +0.63%. EWA +1.08%. Oz Dollar +0.55%.

    The bleeding obvious is that our market will be higher on Monday – particularly the Miners. We’ll have to wait and see if it can be sustained.

    Full Weekly Report tomorrow (if the Internet Gods oblige).

    Redbacka
 
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