Cyclicals recovering ground

The All Ordinaries index was up 1.5% for the week, ending 22 February 2019. The index ended the week 2.3% above its 200 DMA and is showing considerable strength following a minor test of the 200 DMA in early February.

Of the 470 stocks currently comprising the index (and for which we collect data), 269 of these (57%) ended the week above their respective 100 DMAs, up from 260 (55%) names at the end of last week.  Two hundred fifty-six stocks were up for the week, while 214 ended the week flat or down. Two hundred and sixteen shares finished the week within 20% of their 52-week highs, with 79 of those within 5% of highs.

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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