Consumer Discretionary showing it’s not all doom and gloom

The All Ordinaries index continued its advance during the week ending 26 July 2019 adding another +1.37% for the week. The index is now more than 10% above its 200 DMA. Approximately 63% and 64% of constituent stocks are above their 200 DMA and 100 DMA respectively. 

During the week 67% of stocks advanced. The week ended with two hundred and seventy-nine shares within 20% of their 52-week highs. 111 of those were within 5% of 52-week highs. As we’ve said in the past, more stocks making new highs is an excellent sign of the strength of the market as a whole.

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Consumer Discretionary showing leadership potential

The All Ordinaries index was up 0.14% for the week ending 5 April 2019. The index ended the week 2.6% above its 200 DMA, after a roller coaster of a week that saw it close above the critical 6,350 level before backing away sharply over the next two days to finish the week mostly flat.

For the last six weeks, the index has tracked sideways in a narrow range. Our expectation is for more of the same until there is a clear break in one direction or the other. While that might sound tautological, it is not. A clear break will signal an end to the current trading range and indicate the likely direction of the next move.

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