The Australia ASX All Ordinaries Index gained 0.5% this week. The
index had a follow-through day on Wednesday, gaining 2% on 24%
above average volume. It is the first time the index has been back in a
Confirmed Uptrend since August 6th. Still, the index remains 14% off
52-week highs and 8% below its 40-week moving average. It also had a
heavy day of distribution the day after the follow-through day, increasing
the likelihood of failure.
Symbol: TRON.HK
Global Focus Developed Long
The Australia ASX All Ordinaries Index lost 4.0% this week. The
index finished at its lowest weekly closing level since August 2013, failing
to build on gains during the latter part of the prior week. It is 15% off
52-week highs, well below its 40-week moving average.
Global Focus Developed Long
The Australia ASX All Ordinaries Index gained 1% this week,
snapping a three week losing streak. Early in the week, the index briefly
touched its lowest level since July 2013, falling to 17% off 52-week highs,
before rebounding on heavy volume to close positive. It is in a Rally
Attempt and remains 12% off highs. Health Care, Consumer Staple, and
Consumer Cyclical sectors are sharply outperforming.
Market View
U.S. indices broke through support levels this week, falling below the lower end of a six-month range. Leader-ship ideas sold off, with many now testing shorter-term price or key moving average support. These ideas are likely to chop around, with increased volatility, for at least the next few weeks, as they form new basing pat-terns. We recommend a cautious and defensive approach, avoiding any new buys, especially those that have lagged the market this year. The market has moved into a correction and is now trading 5-8% off all-time highs.
Global Focus Developed Long
The Australia ASX All Ordinaries Index lost 2.5% this week, and has
now lost over 8% in the past three weeks. Last week, it was shifted back
into a Downtrend as it closed below its 40-week moving average, and it is
now 12% off highs and at its lowest level of the year.
Global Focus Developed Long
The Australia ASX All Ordinaries Index gained 0.9% this week,
reversing higher after trading down for most of the week. The index
gained 1.5% on Friday, and closed just above its 10-week moving
average. The index is in a confirmed uptrend, but with an elevated
distribution day count of five, it could be moved to under pressure if it
fails to hold the 10-week.
Gains Broadly Resume, Several Asian Markets Provide New Opportunites
Twenty-three developed markets resumed broad strength, gaining 1.6% on average. Nineteen markets rose, 10 by at least 2%. The U.K., Portugal, and the U.S. (NASDAQ) led, with 3.6%, 3.7%, and 3.3% gains, respectively. Leading markets, including Germany and Denmark, were at the lower end of weekly gainers, but pushed further into 52- week highs. Three markets fell (New Zealand, Austria, Ireland), each by 1% or less.
Global Focus Developed Long
The Australia ASX All-Ordinaries Index lost 1.4% this week, its
second week of losses after a streak of six consecutive weekly gains. It
is about 3% off 52-week highs and has four distribution days in the past
five weeks.
Global Focus Developed Long
“The Australia ASX All-Ordinaries Index lost 0.5% this week,
snapping a streak of six consecutive weekly gains. Look for some
continued consolidation of gains in coming weeks after it has gained 12%
from mid-December lows.”
Global Focus Developed Long
The Australia ASX All-Ordinaries Index gained 0.9% this week, its
sixth consecutive week of gains, five of which have come on above
average weekly volume. It is further extended from its 40-week moving
average than any time since May 2013. Look for consolidation of gains in
coming weeks.
