Postprandials, Monday, 4 February, 2013
Oh Dear. My usual chart provider hasn’t deemed it necessary to update charts for Australia today (Monday). So I can’t show a visual for today’s recap. Without the visual – no point.
So I’m reduced to the WORD. Today was CROOK. Up nearly +0.6% early, XJO finished down -0.28%.
Now, why did this happen?
Well – if you believe the TV Talking Heads it was due to the release of poor economic data.
hmmmm. bahhhhhh. humbugggggg.
The turn down started at 10.13 a.m. The data wasn’t released until 11.30. Isn’t it amazing how prescient the market is? Nope – this was technical. It was due for a pull back. No money coming into the market, so the smarties sold it off. Volume over the past week has been pointing to such moves. It just so happened that some news came in that made a good story for the media tarts.
Nobody’s a magician in the market. Nobody’s bullet proof. Are the smarties right? Maybe. Maybe not. But in the long run they’re the ones with the big bank balances. That’s why they’re called “smart”.
Today’s action? End of the bull rally? Who knows? But – if tomorrow is a big downer – it’s likely. Friday was a big up day. Today was a shooting star. If tomorrow is a big down day, we’ve got a classic three day reversal pattern – right at a long term resistance level (not shown on the chart provided).
Here’s a cave painting of the Australian market (courtesy of bigcharts.com – somewhat more reliable than my usual provider):