Something lurking out there .... Also on JSE

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Derek  8 Jun 2018

Morning,

The best I read yesterday was: "Something lurking out there" will upset the stock market, says Blackstone's Wien. So true.

International:
Profit taking stepped in for technology shares and corrected the NASDAQ -0.7%. The East is also reacting negatively to this move this morning.

Lets show where all this is happening for the Nasdaq .... in overbought territory.



NVIDIA Corporation is also showing divergence. Notice how all the indicators are overbought, no wonder there is profit taking.



Estee Lauder that has nothing to do with technology shares, created a flag lately and then smashed it yesterday. Notice that this share is not in overbought territory.



JSE Technical:
The Rand is still weakening and that is supporting the Rand Hedges. I showed Exxaro yesterday, so lets show Kumba Iron Ore today. Notice where FrontRunner broke up.



On the JSE you must not even dare to show results that did not meet expectations. Sanlam did so and got slaughtered. It closed below my strong support and a red trend factor started developing. If it does not climb back into positive territory, it does not look good at all for this share. It is important to have a wide range portfolio as there is always one that comes and bite you. I got bitten by this share.Ironically the death cross is also happening .... 50 day crossing the 200 day moving average downwards.



You must have a great weekend.
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