Daily Murmur 19/04/11 | Gary Glover | Finance News Network

Daily Murmur 19/04/11

by Gary Glover


I sent this chart to my portfolio and trading clients on monday.  This is the All Ordinaries chart and this bearish engulfing pattern is a very bearish reversal signal for our broader market.  If you look through our key stocks RIO, WPL, FMG and ANZ all had the same bearish engulfing pattern.  BHP had a massive shooting star formation on the weekly chart.  All very bearish signs.  Volume was also very high for the week. 
I was wondering what might be the catalyst here and the U.S. debt issue could grow into to something more meaningful and could be a key theme for the bears going forward.

Our chart shows that our broader market indice could eventually trade as low as 4200, retesting the July 2010 low.  This would represent a drop of about 15%.




Disclaimer

Gary Glover is an Authorised Representative (Rep No. 259215) of Novus Capital Limited ("Novus"). Novus is a holder of Australian Financial Services Licence No 238 168. Novus, its directors, officers, associates and employees each declare that they, from time to time, may hold interests in financial products and/or earn brokerage, commission, fees or other benefits from financial products mentioned in this e-mail or attached documents. Unless specifically stated within this page or an attached document, any information communicated by this e-mail constitutes unsolicited general financial product advice which has been compiled without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you need to consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance or relate to a future matter.