Tom Scollon

I scan for opportunities and cannot see anything that really excites me.  As I see it, there is much lethargy surrounding the markets at the moment.  Sort of in the doldrums. 

To entice me into the market I need to see some degree of momentum.  Whether that be in certain sectors or in gold or large caps.  Nothing for the moment but I still check daily.

I don’t really want to hold a couple of stocks – I am either in it or out.

As I scan the only majors that I can see as being mildly interesting are:


But this is not enough for me to jump in at the moment.

I don’t see any major fallout at the moment either but there is just simply little right now that is lifting markets in a convincing manner.

Let’s look at come charts:

The most telling of all is the All Ords weekly:

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I don’t expect we will see the dive to wave five as suggested above.  But it does give me a reason to continue to stand on the sides.

The other point I note from the chart is that there has been a steady decline in the volume moving average over the last five years.  More investors are cooling their heals now.  Just watching and holding back.

The next chart is a daily:

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As you can see in the close up view the XAO has been range trading – going nowhere – for the last several months.  So there is no strong signal to jump in – or for that matter to panic.

We zoom into the daily in this next chart:

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And what hits me in the eye is the oscillator well below zero.  This is merely confirmation of what we already know – the market is lack luster.

But don’t turn your back.  Markets rarely stay dull for exceedingly long periods of time.


Enjoy the ride

Tom Scollon