It is interesting that the All Ords and the Metals and Mining indices have both hit new highs during the week, but the sentiment in the resources sectors, based on the number of stocks in uptrends versus downtrends, is still negative. The reason for this is the large number of penny dreadfuls that are in the doldrums. Producing companies, especially the iron ore and leading gold miners, continue to provide good returns for shareholders. Junior companies just keep holding their hands out for more money and the market has lost patience with all of the non-performers out there.

Having said that sentiment is negative, a quick look at the Sentiment Oscillator tells us that it is about to break out into positive territory. Maybe things are getting better notwithstanding the increasingly uncertain international political and economic environment, the end of year tax selling and the “sell in May and go away” maxim. Sabre rattling, the oil price and then the gold price will be the focal points in the near future.