Whats going on?

Something happened yesterday that I am struggling to find an incident where it has been repeated in the last 4 years. Sure we have had plenty of nasty days in four year bull run thats not what I'm talking about. What happened yesterday is the first occurrence of a lower high followed by a lower low. The first in 4 years!

We have had falls with some churning and dead cat bounces followed by more falls and new lows but not this kind of up trend that fizzled out. The last leg up started with a low on the 22nd of November and reached a high on the 11th of December but it didn't get close to testing the previous highs let alone setting new highs before it turned around. So that is a lower high, a very rare event in the last four years. Then bugger me we get the day from hell, if you are long that is, that takes out the last low. At the moment this could all be repaired in a week or to with a little bit of magic rally dust from Santa but its yet another sign that times are a changin'

Comments

[Muddy Farmer]

Pwaaaaaarrrr!
XJO down anoterh 2% today.
Bargains galore. Too busy bamnging on the keyboard buying these going-cheap blue-chips.
Might even get som CNP.
Yes, Virginia there is a Christmas. Twice this year.
Aug 16 first, and now yesterday and today.
Than you, thank you, thank you...

[Spud Mack]

The problem with chart trading is that you fail to see the underlying reasons for movements. Lower highs and all that kind of stuff is simply based on timing of certain market sensitive announcements. I am with the Muddy Farmer on this one.

[THT]

Spud Mack. the problem with thinking you know what other people are doing/thinking is you will get it wrong more often than not. In anycase its not the reasons I give a @$%# about its the only thing that matters. The Price. If it has turned around its turned around.

;-)

[Andrew]

It is interesting from a technical and sentiment view point, there are a lot of well conditioned dip buyers out there after this run up I think. I wouldn't be surprised if the market has some sting for the bargain hunters at the moment, though am taking myself out of the prediction game with my trading.. Other than I have a contrarian punt at the moment with my variable interest rates that I shouldn't be fixing them quite yet.

[Andrew]

Champion call from the first two pundits. Time for a triple up in CNP?

Respect the market or it will eat you up I reckon, forget about Christmas coming twice each year. A lot of bull market babies are getting their first decent frying pan to the face perhaps?

This market is beginning to look broken, wouldn't be surprised by more tankage with sell the rally opportunities or some volatile ranging to mild bearish grind downs, the return to bull 7000+ rally which I'm still seeing some votes for is by far the least likely of the possibilities as I guess them.

Cheers,
Andrew.