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XAO Technical Analysis

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Re: XAO Analysis

Short sellers have had an impact on today.

Good time to go laze around a few Islands.
See you all 1/12
Enjoy!
 
Re: XAO Analysis

Short selling is good for the economy ..... blah blah bull ****! The only thing its good for is the short sellers.
 
Re: XAO Analysis

jono_oz said:
Short selling is good for the economy ..... blah blah bull ****! The only thing its good for is the short sellers.
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So... how many listed companies went belly up when there was no short selling? :rolleyes:

Come on... I'll look forward to any more short selling arguments. :)
 
Re: XAO Analysis

I never ever thought we could go this low but hopefully these previous peaks in 01 & 02 will act as asome sorta support
 

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Re: XAO Analysis

Oh well the Financials are doing okay today.....:confused:
Oh thats right there is still a shorting ban on them ;)

Hey Prawn... how much worst it could have been with those hedge fund vultures running amok in the second biggest market correction in history (and still haven't hit bottom yet)

Thankfully we will never know
 
Re: XAO Analysis

How can, after a 2 month downtrend when shorting was banned, people still blame short sellers the day after the ban is lifted :confused: Talk about heads in the sand.

I agree with Waynes comments, lets ban buying too so then prices are not affected by 'evil pressures' on the upside :rolleyes:
 
Re: XAO Analysis

lol.... I'd be happy with that No selling No buying :D
Yeah lets all go and hibernate for about a year
C ya next spring:D:D:D
(Insanity feels good, hope its permanent:eek:)
 
Re: XAO Analysis

Well, my inverted H&S now looks more like a broadening formation. (I keep looking for that positive development, but I do feel like I'm Ali playing Rope-A-Dope against Foreman right now).

Would need to hold at 3400. With respect to the 55 day Bollinger Bands (green) we would have a "relative" higher low, so long as the price doesn't traverse down to touch this band. It is a piece of evidence to suggest a rally might ensue.
 

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Re: XAO Analysis

jono_oz said:
Short selling is good for the economy ..... blah blah bull ****! The only thing its good for is the short sellers.
Click to expand...

I don't get it ASX200 only down 0.6% after short selling ban lifted and the ignorant still blame the shorters.

No wonder most people lose money in markets. They don't understand them :rolleyes:
 
Re: XAO Analysis

This might interest some of you - from Crikey today -



Selling the effects of short selling short


While many intelligent and respected business people blamed short-selling for their company’s ills, it appears that short-selling did not have a negative effect on share prices -- arguably, recent market falls have been exacerbated by the ban (which resulted in reduced liquidity). Since 21 September 2008, when ASIC, prompted by Kevin Rudd and Wayne Swan, banned short-selling, the All Ordinaries was trading at 4,840. Yesterday it closed at 3,513 -- a drop of 27% in less than two months.

Consider the biggest critics of short-selling and the share-price performance of their companies since the ban.

A major opponent of short selling was Babcock & Brown. In February, Lateline Business reported that:

[Babcock CEO] Phil Green believes short selling by hedge funds is a major reason for the dramatic slump in Babcock and Brown's stock this year and says any ASIC action is long overdue. Green claimed that "it makes it very difficult to really try and run the company in the face of the share price volatility that we are seeing."

Since then, Green "resigned" as CEO of Babcock and lasted a couple of weeks as a non-executive director. Between 26 September and 12 November 2008, while short-selling was banned, Babcock shares fell from $2.37 to $0.31, a fall of 84%.

Another key critic of short selling was Australia’s former richest man, Andrew "Twiggy" Forrest. Forrest, commenting about the sudden decrease in Fortescue’s share price, claimed that "all these rumours we think are profligated by people we believe have a financial interest in shorting this company … we don’t appreciate it. It is not helpful for the workings of a proper financial system." (Fortescue’s broker, Southern Cross Equities, allegedly sent clients a note claiming that "FMG shares have been subject to an aggressive and coordinated shorting campaign from a high of $13.15").


However, as it turns out, short-sellers weren’t the cause of Twiggy’s woes. After the ban was imposed, between 22 September and 18 November, Fortescue fell from $7.15 to $1.61, a fall of 77%. One suspects a slowing Chinese economy and slumping demand for iron ore had more to do with Fortescue’s flailing share price than short-sellers.

Another short-selling critic was outspoken CEO of Transpacific Industries, Terry Peabody. Peabody told Inside Business that short-selling is "a despicable practice, to be honest with you." During the short-selling ban, Transpacific’s share price has fallen from $7.10 to $3.98 on 18 November.

However, few were as outspoken with regard to the evils of short-selling as the quick-witted folk at ABC Learning Centers. Eddy Groves told Business Spectator that it’s "very difficult for a CEO when you’re trying to run the company as well. Crazy rumours. Stuff that’s just totally untrue. This is a process driven by companies or groups who are trying to continue to force our price down and continue to short stock … June’s results were excellent results. Excellent results."

Of course, the results weren’t excellent, the company was actually hemorrhaging money. Eight months later and ABC is in receivership, relying on an emergency government cash-injection to allow it to continue to operate. Turns out those rumours didn’t even fully reflect ABC’s perilous state, with critics now alleging that Groves misled investors and bankers for years.

If short-sellers have been guilty of anything, it’s been of going too easy on fast-talking executives, who are very quick to talk up their company’s prospects, but slower to take the blame for the shortcomings. Next time you hear a CEO blame their company’s woes on short-sellers, it would probably be a good idea to short that stock.
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Re: XAO Analysis

nick2fish said:
Oh well the Financials are doing okay today.....:confused:
Oh thats right there is still a shorting ban on them ;)

Hey Prawn... how much worst it could have been with those hedge fund vultures running amok in the second biggest market correction in history (and still haven't hit bottom yet)

Thankfully we will never know
Click to expand...

And think of the rally we would've had when they had to cover, might have even encouraged some new buying too
 
Re: XAO Analysis

AzzaB80 said:
And think of the rally we would've had when they had to cover, might have even encouraged some new buying too
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Probably a reason the US has faired better than us.

They are actually able to hedge if they want to do some buying...
 
Re: XAO Analysis

AzzaB80 said:
And think of the rally we would've had when they had to cover, might have even encouraged some new buying too
Click to expand...

Ok then we should have a covering rally soonish then...good news.
Should be an interesting day 2morrow,depending on the Dow of course.

I do feel XOA has factored in much of the downside and 3400 might hold and provide some support towards the upside

However the Dow has no right to post a gain tonite so I wonder if 3200 will be the next stop?
 
Re: XAO Analysis

>Apocalypto< said:
a close under 3500 :eek:

who's for 3000????
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I never thought a year ago we would get this low, so I wouldn't be surprised. I'm just shocked at how our market has managed to persist in going down despite the Dow being up, this has happened on numerous occasions lately. I believe last Thursday the Dow was up some 550 or 6% and our market could only maintain a 1.5% gain, then when the Dow lost 300 or roughly 3% the next night we lost all of those previous gains, then some.

Maybe this is that 'unrelenting selling' some people have been talking about.
 
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