Last week the All Ordinaries did exactly what as predicted. I wrote last week “the All Ords will continue to rise this week with average to strong moves Tuesday, Wednesday and Thursday. Thursday August 5 is a strong turning date for the market so if the market is moving strongly up then a reversal Thursday will see a counter trend down until Monday, August 9.” Monday, August 2 the market didn’t do much, Tuesday was a large range day as was Thursday. The market rose up at the beginning of the week and then turned down Thursday and continued its fall Friday as I suggested it would. What will it do this week?
I expect this week to be volatile and difficult to trade with very short term trading opportunities. My bias is that the All Ords will open low on Monday and trade up at least until Wednesday. Current support is at 3510 and 3489. Key turning date this week is Monday.
The All Ords index is entering week 12 of its 19-week Primary cycle and to see the current Bull Run to continue it is important that the market rises this week and makes new all time highs late this week early next week. If the index falls below 3489 watch out! This market will have a big fall (this is not my bias, but anything is possible.)
A word of warning for short term traders - the market will become more volatile and less predictable, and traders analysis skills 'will tend to be distorted. The message from this is if you do trade this period from August 10 – September 2 , be nimble …. Take profits often and early.
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