I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can you lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.

Monday, August 9, 2010

All Ords now in uptrend

The 3-month correction in the Australian sharemarket is now 'unofficially' over.
The XAO Indicator today turned blue. Statistically (measured over the past 30 years of data), 67% of the times that the indicator turns blue the next red bar will have a higher close that the close of first blue bar. Today's closing level on the All Ordinaries Index was 4,615.60. There is a 67% probability that the next red bar will be higher than 4,615.60. By the way, the XAO Indicator will turn red if it makes an intra-day low below 4,360. That is a dynamic level - it will change with time and will rise with the market rising.
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1 comment:

  1. AnonymousAugust 15, 2010 at 7:13 PM

    So I can see from the graph that over the past 3 months, according to the red bars, there was a fall in the market. Why is this referred to as the 'correction' in the share market?

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