BHP & RIO – Algo Signals

Posted on | by Leon Hinde | Leave a Comment on BHP & RIO – Algo Signals

Our Algo Engine is now flagging “higher low” structures in a  number of the large cap commodity names; across both metals and energy sector.

In particular, BHP and RIO are now at levels where a technical bounce is likely to occur.

Although, we struggle with the timing of establishing new long positions, given our current valuation concerns at an index level.

We’ll watch the price behaviour in BHP and RIO this week and look for evidence of the short term momentum indicators turning positive.

Chart – BHP

Chart – RIO

 

Index Chart Update – XJO, Dow Jones & NASDAQ

Posted on | by Leon Hinde | Leave a Comment on Index Chart Update – XJO, Dow Jones & NASDAQ

The Dow Jones had a minor retracement from the 1 March high of 21,169 to close the week out at 20,902. Wednesday in the US will see the Fed Reserve hand down their decision on US rates, with the market now pricing in a 92% chance of a .25% increase.

Interestingly, defensive names such as consumer staples have been some of the best performing stocks, (on a relative basis), when compared to other market sectors over the past month. In many cases, we’re now seeing PE ratios extend to 22x earnings and yields compressing down to 2.2%.

Dow leaders such as Boeing & Goldman Sachs are selling off after their terrific rally and GE, which has under performed lately, showed strength in Friday’s session.

Due to stretched equity valuations, we’re most likely to see further consolidation in the major indices.

Chart – Dow Jones
Chart – NASDAQ
Chart – XJO

 

Algo Signals – New Chart Feature

Posted on | by Leon Hinde | Leave a Comment on Algo Signals – New Chart Feature

From yesterday’s group of Algo Signals, we’re now tracking GEM as a potential short.

We’ve added a new feature to our charts, which now includes the ability to turn on or off the access or viewing of “Leon’s Chart” function. The image below identifies the highlighted button in yellow. Click this button on your charts to enable the feature.

New Chart Feature – Leon’s Charts