The Quad charts and share ranking table have been updated at the close of trade on Friday, 31 May 2019
This chart of the FTSEJSE All Share Index’ (ALSI) closing level on the Johannesburg Stock Exchange (FTSEJSE) shows the current positive trading channel that the ALSI closing level has maintained. MR believes that the ALSI has been successfully supported resulting in this index reversing.
Current Closing Level
The ALSI has reached down and is testing the support at the upper secondary, positive, trading channels lower boundary with this support proving to be unsuccessful. This unsuccessful support has not been discounted by the market, as depicted through the leading volumes. We believe, with the ALSI leading volumes topping and correcting, the market is discounting effective support at the lower secondary, positive trading channel boundary. In the recent trading past, the ALSI has been supported at the said boundary, reversed and is currently embarking on a positive trading trend.
This positive trading trend should lead to the ALSI reaching up to test the resistance at the current positive trading channels upper boundary, at an index closing level of approximately 60 000 (10%).
The Performance of the MR Long/Short portfolio in 2018
At the close of trade on Monday, 31 December 2018, the MR monthly portfolios in 2018 have out-performed the ALSI by 42.3%.
The Performance of the Long/Short Portfolios in May 2019
At the close of trade on Friday, 31 May 2019, the long side of the May monthly portfolio has depreciated by -6.3% with the short side of this portfolio appreciating by 15.7%. This equates to a net appreciation by this portfolio of 9.3%. With the ALSI having depreciated in May, by the close of trade on 31 May 2019, by -5.3%, the MR May portfolio has out-performed the ALSI by 14.6%.
At the close of trade on Friday, 31 May 2019, the MR monthly portfolios have out-performed the ALSI by 7.6% in 2019.
The June 2019 portfolio is available in the ‘Subscribers/Recommended Portfolio’ tab in our website entitled ‘www.marketmind.co.za’.
Monthly Portfolio of Longs and Shorts for June 2019
We have published a portfolio of Longs and Shorts for the month of June 2019. This portfolio is available in the ‘Subscribers/Recommended Portfolio’ tab in our website entitled ‘www.marketmind.co.za’.
Conclusion
MR believes that, if the inverse relationship between the closing level and the leading volumes is maintained in the foreseeable trading time ahead, the market is discounting the ALSI closing level as having reversed and should continue to trade positively with effective resistance at the current trading channels upper boundary.