10/11/22. Morning Report.
American Indices keel over, Commodities weaken, ASX set to fall, Bitcoin smashed again. (Doom and gloom).
Overnight in America:
Dow Jones -1.95%. SP500 -2.08%. Nasdaq -2.48%. Small Caps -2.29%. Banks -2.2%.
Dow Jones.
DJ has been the strongest of the major market indices in the U.S. It has been the first to break above the 200-Day MA. It has since been oscillating around that important dynamic support/resistance line.
Bollinger Bands are an interesting technical analysis tool. One of the first things you learn about BBs is that a tag of the upper or lower bands is not, of itself, a buy or sell signal. A chart can climb up an upper band or crawl down a lower band for considerable periods of time. That effect is clearly seen in the above chart. (See here for Bollinger on Bollinger Bands.)
An important pattern with BBs is the M Top. That occurs when the chart closes outside the BBs, pulls back to a low, then closes higher but inside the BBs. A break below the low is a sell signal. In the above chart the low occurred on 3 November. We'll watch carefully for a break below the low of 3 November.
Commodities.
Commodities Index -2.31$. Energy -3.37%. Base Metals -1.52%. Agriculture -0.45%. Gold -0.5%.
Iron Ore Futures -2.1%.
Overnight ASX Futures down -0.76%.
Bitcoin.
Bitcoin was smashed last night, down -15.9% in US$. Avoid.
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