The importance of a Trend Factor!

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Derek  18 May 2018

I will discuss the Trend Factor below.

All the indices in the US closed negatively yesterday. The East is positive this morning with just ths ASX negative. I showed yesterday that the ASX is overbought.

Hopefully the US is only consolidating with a J-Curve. Notice the doji on the EMA8 line indicating uncertainty about the way forward for the S&P500.

The oil price is surging due to Trump's actions again. So it is no surprise that Marathon Petroleum Corp has broken its red trend line.

JSE Technical:
Barloworld bounced on support again, but this time with divergence.

The banks took a hammering yesterday and stays in a negative trend as shown for RMB Holdings. Most of the bottom supports were broken for the banking shares.

The Importance of a Trend Factor:
I was at a investment breakfast seminar yesterday where they showed some of the shares they are exposed too. They did mention that the last two years have been very tough .... I agree.

They are over exposed in British American Tobacco. Notice the trend line and where the Trend Factor turned red.

Ditto for Anheuser-Busch.

You can decide for yourself if they have good investments. Just because a share did well in the past is no guarantee that it will do so now. The Trend Factor helps you to stay away from negative long term trends.

On that note I will conclude with Steinhoff Africa Retail that turned red in February. I stay away from anything that has a slight smell of Steinhoff?

You must have a great weekend and only look at postive trend shares.
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