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

daxxao19012016

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