28/3/23. Tuesday Evening Finspiration Report.
XJO had a strong day today.
XJO up +1.04%.
The Trends:
- Long term trend (200-Day MA) neutral.
- Medium term trend (20-EMA) down.
- Short term trend (Hull MA13) up.
The Index still has a lot of ground to make up to turn the medium term trend to bullish.
Today's candle is bullish and makes a break-out from a rising triangle, which is bullish. So, in the short-term we're looking OK, just don't get too euphoric yet.
Defensives took a back seat today, while cyclical growth stocks were up solidly. Energy up +4.5%, Materials up +2.2%, Financials up +1.1%. Health down -0.9%.
Uncharacteristically, Information Technology -0.6% took a hit - following the American Nasdaq down.
Amongst the large caps, Woodside Energy was the stand-out +5.4%.
The Ratio Chart of Composite Bonds to XJO still hasn't favoured stocks over bonds - that confirms the need for caution until the medium term trend turns up.
Until the 5-Day MA gets above the 21-Day MA (at the very least) its best to maintain a defensive stance.
In early European trade, stocks are generally up with the Euro STOXX600 up +0.3%.
Stay Safe
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