Another suspicion of irregularities? .... New Highs .... TIP

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Derek  10 Jan 2018


All indices except Australia still positive. I do see however signs of overbought as we move further positive. Is this a divergence forming in the Nasdaq and is FrontRunner starting to break down?

You must not be scared to trade new highs. These are the shares that drives the index. I show Boeing, the main driver of the DOW. Look at the strong TrendFactor.

JSE Technical:
The year has not even warmed up and we have another suspicion of irregularities at Aspen. I have a hunch that we might see even more as the auditors are now very careful after what happened at Steinhoff.

Notice the trend of the MACD and FrontRunner and where MACD broke down. I also show where the TrendFactor went negative (red).

The financials are still consolidating and Sanlam, that I showed yesterday, fell back again. It is only resources that are still trending stronger. It is then no surprise that our strongest trending share, Kumba Iron Ore, is making a new high. Notice that the TrendFactor of Kumba is even stronger than Boeing.

TIP of the day:
Stay away from negative TrendFactor shares! Our graveyard of irregularities are growing and thus no surprise that Steinhoff and EOH are at the bottom of the TrendFactor. Just behind them are Brait. All stay away shares. Rather look at new highs, than doing bottom fishing.

Enjoy your day.
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