XSO 0.11% 2,846.4 s&p/asx small ordinaries

On your toes everyone – will New York form a right shoulder to...

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    On your toes everyone – will New York form a right shoulder to confirm a head and shoulders top? Mind you, as I have mentioned before, I think “they” (and we all know who “they” are now) will be aware that if the support isn’t forthcoming, then this is what the S&P’s outcome will be. That was just too accurate the other day when it got to within one point of my line in the sand. This is what makes me think there is enough attention being paid to what the market is doing that everything, bar the kitchen sink, is likely to be thrown at it in coming days to negate the possibility of a major top right here – right now. S&P needs to get above 2880 and hold it. Can’t say the market is boring.

    US dollar slightly better again but it was the poor little Aussie dollar that was the target once more. Goodness us Aussies are going to be priced out of overseas travel very soon. Certainly won’t be much left for the kids at this rate.

    Thankful for a bit of a bounce in copper. Been a tough couple of weeks in this market. Grains rallied and then collapsed again into the close. Those poor farmers. Lumber has also rolled over sharply again. Gold little changed but it is gold expressed in yuan that I think is particularly interesting. The yuan has weakened in the past couple of weeks allowing the yuan gold price to rally sharply. At the moment it has formed a beautiful parallelogram and is presently sitting right on its upper boundary. Certainly an exciting chart. Aussie gold price is right up under its highs formed in January and February – little wonder there has been such good support for Australian gold stocks. Had a very slight correction in them yesterday but would like to see a bit more after the steep rise in the XGD this past week or so.

    The Australian market (XJO) could do some really good work here but I think we are going to be left completely governed by what the New York market achieves. The XJO hourly chart has formed a flag pattern and should break topside today.
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