XMJ – S&P/ASX 200 Materials

I’m currently holidaying overseas but have been watching closely the developments of the US election, the ASX and the Chinese charts.

Whilst the US charts continue to break records, the ASX charts require some more heavy lifting to break through neutral territory at present. Even though we’ve broken through record highs we are still grinding along somewhat!

The Financials are kicking goals and have been for quite sometime and continue to do so since the ‘Trump’ win however the Materials Sector is somewhat lagging after some consolidation in recent weeks.

I now think the Materials sector is looking to move forward again from here based on some fundamentals.

Remembering this sector roared ahead in Sept based on Chinese stimulus.

The RSI needs to be watched closely.

All we need is for these two sectors to combine and perform strongly together and we’ll be well and truly on our way to smashing all time highs repeatedly.

I sense this could be the start of a very explosive uptrend for 2025 in our local markets. It’s time for the materials to shoot for the stars …

A bold prediction but the 18.6 year cycle (discussed previously ) should hopefully follow this trend.

Two charts below to watch closely in anticipation of what may lie ahead –> 1yr chart XMJ (Materials) and China’s positive momentum which is going through some consolidation but above its simple moving average (SMA).