Loving Gaps .... Strong moves on JSE

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Derek  9 Apr 2019

Good Morning,

Stocks in the U.S. were mostly higher as the S&P500 pushes to 8 wins in a row. I am ignoring the DOW as Boeing has such a big influence on that index currently.

The magic figure for any index to have continuous gains is 9. Notice how we are moving more and more into overbought territory in the S&P500.

I love Gaps as it tell you where the action and big moves are. You may recall when I showed the breakaway gap of Wynn Resorts and the FrontRunner prediction of a much higher high coming. It made another gap yesterday to be the 3rd best mover on the S&P500. This gap is more difficult, as we do not know if it is a continuation or exhaustion gap? We have a doji and is in very overbought territory with unconfirmed divergence in place .... all that makes me believe it is an exhaustion gap?

Boeing also made a gap downwards to pull the DOW down. With court cases mounting against them, this is definately a breakaway gap in the negative direction! I just heard on the radio that they have also been downgraded by Bank of America.

Apple is really surprising me with its current move. It has moved into second gear and has lots of potential still to come before the previous resistance is reached.

JSE Technical:
There were only a handful of winners so far for the year on the JSE, and the same shares continue their positive moves. It is easy to find them in TradeFX, just look at the dark green trend factor shares.

Anglo American Platinum is one of them and gained +5.02% yesterday.

Kumba Iron Ore is another and has moved into 3rd gear to break top resistance with a +5.76% gain.

Stay with the strong movers (winners)!

Enjoy your day.
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