Welcome to Momentum Monday, in what was an extraordinary week which saw the world’s largest economy receive a credit downgrade which caused disproportionately small ripples in some markets . More on that in a moment. We also started reporting season the usual sedate way with a big downgrade to RMD on margin compression. Likewise, more on that in a moment.
Things started to pick up pace a little next week. So be sure to access your reporting season calendar here.
And don’t forget our “Empower Others” program which you can read about it here
The content for this week's edition is as always:
Broader market sentiment
Member corner
Stocks in the “Shine Zone” (including changes)
52 week high screen (including changes)
Remember you don’t have to read all this contribution. Simply scroll to the area of interest. And of course if you are not interested in Momentum, have a great day!
Broader Market Sentiment
We look at the direction of both the US and ASX markets to gain an understanding of the broader sentiment at the minute. It is important to stress here that I DO NOT use this to time my entry or exit out of stocks. I prefer to use the individual charts of stocks to do that. However I find it useful in helping us determine how aggressive/cautious traders should be in their trading. In short the more positive the broader market is the more risks you can take and vice versa.
US / S&P500
After last week’s new short-term higher high, the market pulled back a bit , falling 2.3% for the week, to notch its worst weeks since March, not that this changes the view that the target is the all-time high of 4766
S&P500 Weekly chart
It is totally normal for zig and zags to form in an upward move so at this point, one week does not raise any concern. Nor really should it if we see two or three consecutive weeks of pullbacks. Had it kept moving in a straight line in a north-easterly direction the trend would be spread…
