by Murray Dawes on March 26, 2010
[Ed note: This article was first sent to Slipstream Trader members on Friday, 19th March 2010. For more information on joining Slipstream Trader please click here].
Currently most charts are looking fairly positive and stable at first glance. If we have a look at US markets it is clear that the daily charts seem to be in strong uptrend with new highs being achieved in the index for this bull move. Moving averages are all positive and by default MACD’s look healthy.
So why worry? Well if you look under the bonnet at the market internals it sends a very different picture. In most of the trading sessions for the past 4 weeks the US markets have been trading far below their usual volume for this time of year. As Goldman Sachs JB Were mentioned during the week, the usual volumes for this time of the year are about 1.2-1.5 billion shares. Currently we have seen 9 of the past 18 days trade under 1 billion shares which shows quite clearly that there isn’t that much conviction in the current rally.
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by Gabriel Andre on September 4, 2009
Similarly with other major indices in the world, the S&P 500 is currently running out of steam. The most popular benchmark of the US stock markets has posted a high at 1,040 points last Friday (point B on the chart). However the bullish trend initiated in March seems to be completed as the indicators argue now for a correction.
Bulls versus Bears
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by Gabriel Andre on September 3, 2009
In parallel with the stock markets, the commodities rally has reached its peak as the CRB Index posted a recent high at 269.18 points during the first fortnight of August. Actually the commodities benchmark has already retraced slightly as its current price is 249.63. That’s 7.3% lower than the high of August.
On the weekly chart, we see that despite the rebound generated in last March, only a small part of the huge decline occurred last year has been retraced…
An unimpressive rebound
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by Gabriel Andre on August 20, 2009
In our last analysis (Money Morning dated 6 May 2009) on Woodside Petroleum (ASX: WPL), we were anticipating a further move to $50 in case the price action would clear the immediate resistance at $43.
Actually the stock cleared the level of $43 but failed to rise to $50. It failed just above $46 at mid-May. That’s a resistance level that has been holding for a long time now as several attempts failed to clear it since November 2008. On the weekly chart, the MACD remains positive but has lost some momentum in the last few weeks and may peak soon…
The bulls are weak
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by Gabriel Andre on August 14, 2009
Mermaid Marine is a services provider to the offshore oil and gas industry. This stock (ASX: MRM) has been bouncing back continuously since it posted a low at $0.65 in last November (point A on the chart). It actually peaked last Monday at $2.45 (point B), and has corrected to $2.25 yesterday at the closing price.
The bullish trend between points A and B has driven the stock 277% higher in 8 months and a half. Oppositely to many materials, industrials or energy-related stocks that also sharply rebounded during the last months, MRM has climbed much higher than its previous highs of 2008.
Running out of steam?
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