The Quad charts and share ranking table have been updated at the close of trade on Friday, 26 July 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 is reaching down with the target of testing the support at the lower secondary trading channels lower boundary.
The Quad Charts and Share Ranking Table
The quad charts of the indices and stocks that MR monitors with leading volumes and price momentum have been updated at the close of trade on Friday, 26 July 2019. From the stock quad chart, MR ranks the 88 stocks that we monitor from the most preferred to the least preferred. This share ranking table and the updated quad charts have been published under the ‘Subscribers’ tab on www.marketmind.co.za.
In these quads the ALSI is positioned at the source of the quads. This neutral positioning on the quads is further evidence that the market is discounting the maintenance of the current trading channel.
The Performance of the Long/Short Portfolios in July 2019
At the close of trade on Friday, 26 July 2019, the long side of the July monthly portfolio had depreciated by -5.0% with the short side of this portfolio appreciating by 3.2%. This equates to a net depreciation by this portfolio of -1.8%. With the ALSI having depreciated in July, at the close of trade on 26 July 2019 by -1.5%, the MR July portfolio has underperformed the ALSI by -0.3%.
At the close of trade on Friday, 26 July 2019, the MR monthly portfolios have outperformed the ALSI by 1.4% in 2019. The July 2019 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 reaching down to test the support at the lower secondary trading channels lower boundary. We believe that the market is discounting the maintenance of the current positive trading channel.
In the past trading week, we looked at the future trading trends in TBS and the Gold index, being discounted by the market as depicted through the leading volumes. The addresses of these reports are https://www.marketmind.co.za/the-market-mind-tbs-zac-23977-19-july-2019/ and https://www.marketmind.co.za/the-market-mind-goldi-2108-25-july-2019/.