Strong trend shares also attracts strong moves.

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Derek  21 Jan 2019

Good Morning,

The US is still in a strong trend. One of the biggest mistakes I made in my early years of investing was to believe that shares that have fallen the most will bounce the most. NOT TRUE! I only invest in strong trend shares now. It is for that reason that the trend factor plays a major role in selections in TradeFX. I show an abstract from our Analyst Expert of the S&P500 where all the shares are sorted according the Trend Factor. Notice the % daily and weekly moves of these shares. The strongest move was Edward Lifesciences with a massive 10% move for the week.

The DOW broke the 50 day moving average and my resistance line and is just below the 200 day average. Another reminder that cyclic signals must be ignored when you are in a strong trend. The East is also following the positive trend this morning.

As most of the shares are in a strong trend, I try to show interesting breaks. Autodesk touched resistane 6 times in 7 days before the break.

And then Berkshire Hathaway broke out with a gap to smash the 200 day moving average.

JSE Technical:
The RAND bounced on the 200 day moving average and supported the Rand Hedge shares. Have you noticed how often the EMA8, 50 day and 200 day averages act as support and resistance?

Mr Price announced poor results and pulled the retail sector down with it. Notice how Mr Price has moved into a negative trend factor. I am always amazed how these things happen against resistance. Double top against resistance in overbought territory before the correction.

You must enjoy your day.
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