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Australian Market Update

“So where are we now?” 8 Feb 2017 7:50 PM


In May 2016, Jim Berg announced that the ASX200 had switched from a falling trend to a rising trend, but did NOT open our Report’s notional Portfolio as he was concerned that the Banking Index was not following suit.


In June 2016 John Atkinson wrote of the potential for a rally in July, which did eventuate. For example, 9 out of 10 of our closed Trading Signals were exited at notional profits, i.e. a 90% success rate.


During August 2016 we observed many shares in steady rising trends gapping down significantly, so on the evenings of 23rd and 24th August 2016 we announced ‘Important Strategic Announcements’ to members of Jim’s Australian Signals Services such that from 25th August until further notice;

“ ….any Entry Signals posted are primarily for Members’  RESEARCH PURPOSES only and any Members who wish to continue trading and investing do so against the current General Advice of the Proprietors…” 


In Edition 578 of our weekly mentoring-style Investing & Online Trading Report’, we provided charts to show some of the large falls which had led us to that decision and copied the announcement of 24th August in Jim’s JB Caution Update.


In our Report we subsequently flagged the potential for a correction in September/October, increased volatility around the election in November and a Christmas rally, all of which did occur.


In Edition 591 Jim announced that:


1.    The Australian Banking Index (XBAJ) had switched to a rising trend the day before, on Friday 25th November 2016.


2.    As this was now in sync with the rising trend in the ASX200 (XJO), Jim removed his Caution and gave his green light for trading and investing in this market and


3.    Jim announced that he was opening this Report’s notional portfolio and his Signals Services


So where are we now? The ‘Trump bump’ continues to light up the USA market but here in Australia our market has not followed suit convincingly.


In fact, in a recent study Jim conducted, he found that over 50% of the shares in the ASX200 were in a falling trend.


In our Australian Trading and Investing Signals Services we ONLY consider shares which are in rising trends and which pass all Jim’s ‘Weight-of-Evidence’ Entry Rules.


Even so, since November 2016 we have observed that several of the shares we monitor have either travelled sideways or have rallied slightly, then pulled back.


Factors which may be impacting this ‘wallowing’ in the Australian market include: 

i)  Our market may not be so convinced about the USA euphoria


ii)    February is often a time when our market goes on hold, prior to the start of the next Reporting Season by the Australian Companies


iii)   Our rising Aussie Dollar: Since New Year has risen 6% and is now close to 77c. If the Reserve Bank reacts later in the year and lowers the interest rate again, this may cause inflows and further growth in the property market.


iv)  China: Last week our market responded to Chinese economic data which disappointed for the first time in many months and news that China's central bank tightened monetary policy further.


Overall, we have not seen a powering Australian market filled with optimism. Rather, in recent weeks our market has recently appeared to be languishing /on pause-to-down – as if in a ‘wait and see’ state.


Meanwhile for Members of our Report’s notional Portfolio and our Trading and Investing Signals Services we continue to:


A)  Cautiously look for confirmed and convincing entry signals into shares in rising trends  and to 

B)   Monitor/ update capital protection Stops and Profit Targets, daily and weekly............


Your financial independence is at the heart of everything we teach, so if you have any queries, feel free to Contact Us.


May you trade with Jim Berg’s ‘Weight-of-Evidence’


The ShareTradingEducation.com team

P.S. For proven low cost, High Value stock & share trading & investing education, simply click on these links now:

1) To start your Ultimate $1 Trial of Jim Berg's Mentoring-style 'Investing & Online Trading stock market Report - to learn how to trade & invest in USA , Australian & other markets.

2) For Jim Berg’s Australian Trading Signals  and  Investing Signals Services 



Jim Berg and John Atkinson are Authorised Representatives (AR Nos. 322724 and 1251439) and ShareTradingEducation™.com Pty Ltd (“STE”) is a Corporate Authorised Representative (CAR No. 322726) of Maven Capital Pty Ltd, Australian Financial Services Licence AFSL 418504. Examples from the Australian and USA markets are provided to demonstrate that Jim Berg’s principles may be used globally. This educational material is from an Australian source and complies with Australian law and not necessarily any other (local) law. Direct investing in the stock market can result in financial loss. STE products have been prepared for the general information of investors and do not take into account the investment objectives, financial situation and particular needs of any particular person. Persons intending to act on information in STE's products should seek professional advice to confirm that the investments or strategies mentioned are appropriate in the light of their particular investment needs, objectives and financial circumstances prior to taking any action. Refer also to the full Customer Caution Notice in our Terms and Conditions.