Traders take prof­its

Both SA’s Findi and the US’s Dow are over­heated

Finweek English Edition - - Creating wealth - COLIN ABRAMS

SOUTH AFRICAN

fi­nan­cial and in­dus­trial (Findi) stocks have had an ex­cel­lent run since early Jan­uary (and De­cem­ber 2006 as well).

By look­ing at the chart of the JSE Findi 30 in­dex, we ex­plore whether it’s time to take some prof­its off the ta­ble or if more up­side will en­sue in the short term.

We also look at the chart of the Dow Jones in­dus­trial in­dex in the US, the world’s most-watched in­dus­trial in­dex.

The two charts pre­sented are con­firm­ing each other: that traders should take prof­its, as both mar­kets are cur­rently over­heated. How­ever, longer-term play­ers need not be con­cerned.

Please note: For more rec­om­men­da­tions and charts by the au­thor con­cern­ing shares, stock in­dices and com­modi­ties please go to www.the­mar­ket.co.za.

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