Why are markets taking a breather? New Listing

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Derek  10 Oct 2017


Why are the markets all over the world taking a breather? Simple .... they are all overbought. It is only the Nikkei that is catching up this morning after being closed yesterday. All other markets in the East are about unchanged.

I show the DOW and do notice the overbought HeatMaps. Markets do need to take a breather after strong moves.

After a strong run, Bank of America also broke its trend line to correct back to its break support.. We will have to see if support is going to hold. Notice that all this also happened when the share was completely overbought.

JSE technical:
MMI Holdings broke its negative trend line. Do notice however that this share also has a very negative long term trend. (Dark Red just below 2 HeatMaps).
This share responds very good to MACD breaks. I show that on the chart.

Anglo America is also taking a breather. Look how the signals tell the story. HeatMaps were overbought, then came a doji at top with FrontRunner breaking down. Also notice how all the signals are breaking down. Definitely not in buying area!

I was asked yesterday about Stadio, a new listing. Technical I cannot show anything as there is no history data yet. I am however scared if a share can jump so much in one day after listing. Did they make a mistake with their listing price in the prospectus? Can they be so wrong? Or do you see so much potential here? I will keep one eye on this one and rather wait to see how it settles down. There will be plenty of oversold oppertunities in the future if you like this share.

Enjoy your day
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