Tuesday, 13 September 2011

Change from GMT to Sydney time

I have changed the settings of this site so that the displayed Posted date and time are for Sydney, rather than Greenwich Mean Time (GMT) date and time, as were displayed previously. Most of my readers are in Australia...

ASX SPI 200 showing increasingly steep declines

Daily candlestick chart shown below, including after hours trade.

Note the increasing steepness of the down trend lines as the year has passed. This indicates that the market is becoming increasingly weak, and raises the odds that the steepest plunge for the year lies ahead.

ASX 200 and S&P 500 both priced in US dollars

The following chart shows the ASX 200 and S&P 500 both priced in US dollars (USD), for all of 2011 up to September 12. They have tracked each other especially closely since early May, just after the S&P 500 peaked.

Gold still trending up

Daily candlestick chart shown below.

Until the trend line drawn from the July low is decisively broken, gold remains in a strong up trend. That much, I don't think anyone could disagree with.

The following is more of a speculative view, based on a gitchy feelin' in my gut... To my eye gold has entered the early stages of bubble blow-off behaviour. I would not be surprised to see a test of the trend line or a false break, followed by an accelerated move higher to well over 2000 in coming months. We'll have to wait and see. No, I am not long or short gold, just an interested observer. There are other markets that currently offer better risk reward, in my opinion. Though if we get a false trend line break, I might have a small flutter...

ASX 200 set to open higher

The ASX 200 closed trade on Monday at 4039. The daily candlestick chart below includes up to the minute after hours trading, currently at 4078ish, indicating a higher open for Tuesday trade.