XSO 0.25% 2,796.1 s&p/asx small ordinaries

How can we concentrate on markets when we have watched one of...

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    How can we concentrate on markets when we have watched one of the world’s icons destroyed overnight.  From my first visit when I was just 21 to the last time to celebrate my husband’s 70th birthday, this building has always drawn me back to Paris.  And to just watch it being destroyed is really, really upsetting.  I have decided to take my break a day early so this will be my last notes till mid-May.  Struggling to even update my charts.

    So a quick run through.

    Starting with gold.  They tried to break it down overnight but again the price has resisted. Just about every low in gold has been accompanied by a definite effort to clear out all the long positions before prices rally.  So that might still take place as they definitely tried overnight.

    I did not like the look of the move in natural gas.  I think that will weigh on crude.

    Wall Street stalled.  If “they” want to see these markets break through the old highs, I don’t believe they have much time – it needs to happen quickly or it is going to fail and then things are going to get nasty. The NASDAQ Comp was pushed down to its very limit before it rallied – any lower and it is finished.  As well, stock markets don’t like to be told what they should be doing – they are a force of their own.  As I mentioned yesterday, we have never had a situation in my time in the markets like the present.

    Shanghai had a big range yesterday – unfortunately closing at the lower end.  That wasn’t very encouraging.

    Our XJO is caught in a parallelogram that has been formed since February.  Normally such patterns are a continuation but I would want to see a bit more evidence that it isn’t going to be a reversal.  The XJO is definitely dependent on the banks to break through the upper boundary of this pattern but I was far from impressed with their action yesterday.  And just to make the questions on the banks a bit more cloudy – US banks which as we know have lagged the S&P - didn’t carry through and in fact the Finance ETF XLF was again the weakest of the nine sectors that make up their market.

    Another thing to keep in mind – there has been a major focus on the price of iron ore in budget talk – what needs to be kept in mind is that the April contract might be sitting at 93.97 but April for next year is 78.89.  So much for their forward projections but of course as we know, politicians do not watch the markets to this extent!

    I intend to take a couple of charts with me so if I see anything that is really important, I will try and post but need a break.  These markets have been very tiring recently.
 
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