I took a quick look at all stocks in the top 100 ASX to see what is driving the local Australian market – or perhaps even holding it up, you might say, as it does look to be struggling now.
Here is list of what caught my eye: ALL, AWC, ANN, ASX, BHP BSL, CSL, FLT and MQG. This list is not exhaustive by any means but merely some that stood out in a quick scan.
What did catch my eye was that none of these stocks are doing anything spectacular. There have been moves higher but also plenty of retreats – great for those who think that there is still more upside. But certainly, amongst the top 100 stocks I see few with strong upward trends.
Let's look at a daily and weekly chart of each of the XAO & BHP charts as a contrasting example:
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The XAO is short term a little weak but in fairness it does shows good sign of a new high albeit an unspectacular one – in the year or so ahead.
BHP on the other hand, while range trading over the last three months has been steadily moving higher over the last year – with healthy pullbacks.
Out of all the stocks that I mentioned that have held the All Ords up – none are in a five-wave impulse pattern. In other words, they are drifting higher.
In contrast, Financial Stocks are moving lower. For example CBA & WBC:
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Banks are letting the team down whilst those few I mentioned are holding the market together. What surprises me is that, so few stocks are holding it all together.
Perhaps a little tenuous you might say.
Just another perspective for what its worth.
Enjoy the ride
Tom Scollon
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