Traders take profits
Both SA’s Findi and the US’s Dow are overheated
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.