Dr Roffey ….. February 27

At last there is something to write about.
Since the start of the year the JSE has effectively drifted sideways but at last there is some action.
The ALSI broke under a short term support level on Friday and looks set for a move back to test the 42 000 main support.
Gold shares have had the breather that I was indicating and are moving back into buy areas.
Resource stocks are brewing some large top patterns and are ready for a sell off.
Financials and Banks have continued churning inside their large rising wedge patterns. These patterns are set for downside action.
The Rand has strengthened under R13 but in doing so has formed a falling wedge indicating that the sudden strength may be suspect.
The Dow Industrial Index has pushed to new highs while its sister Dow Transport has refused to confirm. This is a classic Dow Theory sell situation.
I remain long term bullish on gold and negative on the rest.

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