If relative outperformance matters,check this out.

At the close on the 15th of Jan. this was the stance in the relative strength analysis (Ratio Analysis) of the instruments analysed.

The instruments are German DAX vs XAO ($AORD) at the main window,SP500 vs XAO second from top, SSEC (Shanghai) vs XAO third, $TSX ( Canada) vs XAO fourth and TLT ( 20 year maturity treasury bonds ) vs XAO at the bottom.

Only instrument outperforming our mighty XAO ($AORD) is  TLT as can be seen at the bottom window which shows a defensive approach. But in terms of the rest, the one and only XAO is outperforming all of the other three major world indexes as can be seen.

Again are the big boys/girls seeing a better value in our market ? Canada($TSX) is also another commodity based market but they are underperforming us as can be seen.

I am not suggesting that we (XAO) are going up here, but rather to point out this important fact.

One thing that I have discovered during my past 5 years of TA studies is that the last major leg of the BULL RUN is likely to be the commodities. If that is to repeat itself again ( a big IF), where should my focus be I keep asking myself ? I am looking for a consolidation of some sort with the broader commodities which may last for months. But I must see the strong down trend halted first, which is not the case yet with commodities.

What do you think ?

Last day of posting today until next week.

Chart is Daily and courtesy of StockCharts.com



All the information and analysis provided on this website is general in nature and for educational purposes only and does not constitute financial advice. No content in any way implies a recommendation to buy, sell, hold or short sell any financial instrument, nor is it financial advice.

Investing and trading in financial markets carries considerable risk, and should always be done in consultation with a licensed financial adviser taking your personal circumstances, financial situation, objectives and needs into consideration.

Links to other websites are inserted for convenience only and do not constitute endorsement of any of the material on those sites, or any associated organisation, product or service. Kazim Agaoglu is not responsible for the content of any site owned by a third party that may be linked to this website and such links are provided as a courtesy with no judgment or warranty being made concerning the suitability, accuracy or otherwise of the content on any such site.

Kazim Agaoglu disclaims any undertakings, warranties or guarantees, express or implied and shall not be liable for any loss or damage whatsoever arising out of in connection with the use of or reliance upon any of the information on this website. The user accepts sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information on this website is no substitute for financial advice.



Comments are closed.