Most stocks are weathering the correction quite well

There is just a general market comment today, as travelling arrangements prevented the preparation of the usual Weekly.

The All Ords looked like it was breaching the uptrend last week - the one that started late last year - but then it rallied strongly. It is hard to see why, as the immediate future direction is not clear. Could the change of leadership of the Liberal Party given some short term enthusiasm that maybe the current government will now face a stronger Opposition? Perhaps, but there must be more to it than that.

At the same time the Metals and Mining Index - the one most relevant to this publication - was showing enormous volatility below recent historical highs. This is normal as profit takers take money off the table, but it is interesting to see that there have been plenty of buyers to soak up the selling volume. On balance this is positive.

Turning to individual companies; there have been a number of heavy corrections, especially in gold stocks, but in most cases the market absorbed the volatility in the gold price without too much concern. It seems that there are plenty of buyers still believing the market will go higher. Nevertheless, there was a sort term drag down effect on the Sentiment Oscillator.
 

 WeeklyComm14February2026.pdf