tinhat
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Higher lows. The volatility alone is still shaking out small investors who can't stand the volatility any longer.
XAO Banter Thread
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Higher lows. The volatility alone is still shaking out small investors who can't stand the volatility any longer.
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A service I subscribe to has put some emphasis on S&P500 holding the 1,200 level. After last night, it looks like it's hanging in there by the skin of its teeth. My wildest imagination can't comprehend what jack in the box surprise might surface to "explain" any rally from here.
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Very succinct. I have to agree.
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4114 is sitting on the lower trendline of the big symmetrical triangle - easy to see.
A drop past 4051 would of course mean lower lows and that's not far off.
So quite a critical day considering all this.
A drop past 4051 would of course mean lower lows and that's not far off.
So quite a critical day considering all this.
Wysiwyg
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The DJIA is double the low of March 2009 which I would think, considering the resource/construction boom we are experiencing, would have the XAO up around 6000 points. Instead the XAO languishes in the low 4000's. Damn frustrating hey. Maybe on the other side of this is a steep rise for stocks?
Comparing DJIA to XAO is a little apples and oranges imho, but regardless it's plain the strong AUD against our trading partner currencies is causing stress for non-resource stocks. I've heard the turn of phrase "strong local currency isn't good for industrial stocks" more than once and it appears to be playing out here.
Just for fun, here is a 5y logscale weekly DJIA priced in AUD.
Wysiwyg
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Yes there was definitely divergence chart wise from about August 2010 and about September 2010 was when the AUD/USD broke out above 94 cents. (yellow line)
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I have one worry though.
In the short term, if DJIA loses from this point 20% in value, I can see XAO/XJO doing more or less the same, and somehow irrespective of the ASD/USD (well, not true, we know there is a correlation, just I believe it is not direct proportional; and I am talking short term).
What is true is that if I live in Australia, I have to assess my returns in AUD (unless I pay everything in USD). Then it makes somehow no difference whether I invested in DJIA or XAO.
Bringing in concepts such as PPP ( Purchasing Power Parity) makes investing across different markets really funny...
cheers,
In the short term, if DJIA loses from this point 20% in value, I can see XAO/XJO doing more or less the same, and somehow irrespective of the ASD/USD (well, not true, we know there is a correlation, just I believe it is not direct proportional; and I am talking short term).
What is true is that if I live in Australia, I have to assess my returns in AUD (unless I pay everything in USD). Then it makes somehow no difference whether I invested in DJIA or XAO.
Bringing in concepts such as PPP ( Purchasing Power Parity) makes investing across different markets really funny...
cheers,
Wysiwyg
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Good to see the push higher while not in the game. 
According to media, China set for +8% growth again this year. Our resource sector set to benefit. America building recovery momentum. Barack Obama serves a second term. Europe becomes an insignificant land mass in the northern hemisphere. Break open the champers, up, up and away.
According to media, China set for +8% growth again this year. Our resource sector set to benefit. America building recovery momentum. Barack Obama serves a second term. Europe becomes an insignificant land mass in the northern hemisphere. Break open the champers, up, up and away.
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Anyone know what that 25 point spike down after 3pm was? Error in data?
skc
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Evil Trading Robots!
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Australia's own flash crash hey.
Was there many trading consequences? Did SPI futures dip too? What about XJO options? People with CFD positions get stopped out?
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Actually I was watching 2 XJO option issues, and while spikes or the 25-point plunge showed clearly on the chart, there was absolutely no movement at that time in the pricing offered by the market makers, which makes me think that they would either not see the spikes or deliberately chose not to react (as anyone realizes, market makers change prices in real-time, before a movement is seen on the chart that lags by a few seconds at least...)
cheers,
Trembling Hand
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The SPI was steady it was just a data issue from the ASX. And as the ASX quotes the indexes only every 30 sec, they are not live dynamic but live snapshot, all the CFD, Oppies MM etc either use the SPI or run there own index algo off the actual share prices to track the XJO.
And the reason why the SPI didn't follow is the same, all the algo bots don't use the XJO/XAO they use the underling shares.
Trembling Hand
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Interesting that the Aussie market has moved higher once opened the last two days while the rest of Asia hasn't thought China adding cash is a positive and gone south once open.
Trembling Hand
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Boom........... deal done.
skc
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So buy or sell the fact?!
Trembling Hand
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I wouldn't fight all this cash.
BUT
The setup from here seems like we have a high on the open from yesterday and a low from 30 mins ago for the week for all markets Equity, Commods & FX. (Aussie & Euro equity reverse times for H L)
I would play the week ending as a breakout week if we can move and hold past the current set H/Ls by tomorrow. That is take out the lows soon, by Friday we will be much lower. Or reverse come Friday if we can push through the highs.
Now where is that fence?
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