Consumer stocks an ominous sign for the economy

The All Ordinaries index finished the week ending January 25 up another 0.5%, taking the index above its 100 days moving average (DMA) for the first time since early October last year. The index also closed just 2% below its 200 DMA. Of the 474 stocks currently comprising the index, only 189 shares (40%) ended the week above their respective 100 DMAs. Two hundred forty-eight stocks were up for the week, while 226 names ended the week flat or down.

Read moreConsumer stocks an ominous sign for the economy

Technology and Health Care showing strength, risk on?

The All Ordinaries index was up 1.8% during the week ending 18 January 2019. This was an impressive move bringing total gains since the December 24 low to 6.9% and taking the index back up to within 3% of the 200 DMA, a significant level from an overall trend perspective.

As always it’s not the headline number that interests us but the numbers behind this number that gives us a better understanding of what’s driving the market at the more granular level of sectors and companies.

Read moreTechnology and Health Care showing strength, risk on?