Technicals | Mar 05 2013
By Michael Gable
Last week I spoke about the market entering a consolidation phase now with stocks like BHP Billiton ((BHP)) heading to cheaper levels. Yesterday’s performance of the market was a reminder that we are in a different phase now. The market is a little more on edge and we need time for all of this to play out. Some stocks are offering good value (our call last week on Network Ten ((TEN)) finally getting a move on is looking good) but there are plenty that should get a little cheaper over coming weeks.
But with interest rates as they are, there is still a wall of money looking to come into the market this year so waiting for the exact bottom could be just as dangerous as you could miss out. There or thereabouts will, in my opinion, be good enough this time around.
ASX 200
There is not much further to add to last week’s comment – “we have now likely reached a short term top in the market and we should expect some volatile consolidation to occur over the next several weeks. I still anticipate a fairly flat correction of only about 5%.” The volatility in the market now is plain to see. We can also see some divergence with the RSI, which has also moved out of an overbought condition, triggering a sell signal. I anticipate the XJO to ease back to 4800 with 4600 being the worst case scenario.
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Visit Michael Gable's website at www.michaelgable.com.au/.
After leaving Macquarie Bank's Securities Group in 2008 after many years of service, Michael has gained a highly regarded reputation in the financial services industry. As a Private Client Adviser with Novus Capital, Michael has become a popular live commentator and analyst for Sky News Business Channel’s “Your Money, Your Call” program. He is also the author of the weekly stock market report “The Dynamic Investor”.
Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management.
Michael deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
Disclaimer
Michael Gable is an Authorised Representative (Rep. No. 376892) of Novus Capital Limited AFSL 238168 ACN 006 711 995. Michael Gable and Novus Capital Limited, their associates and respective Directors and staff each declare that they, from time to time, may hold interests in securities and/or earn brokerage, fees, interest, or other benefits from products and services mentioned in this website. This website may contain unsolicited general information, 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 must consider the appropriateness of the information in this website or the Product Disclosure Statement (PDS) or Financial Services Guide (FSG), having regard to your 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. Michael Gable and Novus Capital Limited believes that any information or advice (including any securities recommendation) contained in this website is accurate when issued but does not warrant its accuracy or reliability. Michael Gable and Novus Capital Limited are not obliged to update you if the information or its advice changes. Michael Gable and Novus Capital Limited and each of their respective officers, agents and employees exclude to the full extent permitted by law, all liability of any kind, in negligence, contract, under fiduciary duties or otherwise, for any loss or damage, whether direct, indirect, consequential or otherwise, whether foreseeable or not, to the extent arising from or in connection with this website.
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