Wednesday, August 5, 2009

XJO turning down?


Don't want to get ahead of myself here, but the market is looking a little toppy...target 4160.

If you take the conspiracy theorists at face value, the Fed is battling to balance the forces of demand for treasuries (benefits from a lower USD) and a stable market (guess that means that equities heads up). With treasury auctions on the horizon again you have to give at least a little weight to The Evil Speculators observations on POMO activities.

Still I'm game for a pullback. Sentiment is at extremes that suggest stops will fuel a move to the downside (see The Technical Take)

On the postive, QBE is holding the trendline and looking solid for a move higher...



4 comments:

  1. Agreed. I think your short may be in the money by the end of next week.

    Yesterday was a perfect move of money away from stocks which have rallied hard and towards the QBE's, WOW's, CLS's and others.

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  2. Gotta get me some of those CSL...

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  3. I'm just not sure at what price though. CSL is pricey at a forward PE of around 18, plus the FX effect can't be helping.

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  4. Jeez, the markets up over 40 points at the moment...just ignore my first comment.

    Talk about the triumph of hope over reality?

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