The All Ordinaries (XAO) is Australia’s secondary index behind the S&P/ASX 200 (XJO).
Once considered the barometer of the Australian Stock Market, the All Ords lost its status as Australia’s “premier” index with the introduction of Standard and Poor’s (S&P) Indices 14 years ago.
Even though it has been superseded, many older investors continue to use it as a benchmark and prefer it over the ASX 200 index.
All Ordinaries or ASX 200?
The All Ords contains the top 500 stocks by market capitalisation on the Australian Securities Exchange (ASX). As it contains mid-cap shares, many consider it a better representation of the Australian economy. Although the difference is minimal, many still believe the All Ords is a more accurate gauge of the Australian stock market.
Intraday Chart: Used only by traders with the most important time being the close. Typically the close indicates the “mood” of the market going into the next day’s trading. Often it’s also correlated with the US Futures index; if the US markets indicate they will open lower, this negativity is often displayed in the All Ords later in the day.
5 Day: Primarily used to identify the end of week close. If Friday’s close is higher than the preceding Monday’s, the overall sentiment can be considered bullish. It’s also used to analyse the market’s response to announcements made during the week.
3 Month: Used by momentum traders and probably the least useful of all charts.
6 Month: Starts becoming useful for investors. It gives an early warning to the long-term trend of the All Ordinaries. I like to use 6 month charts overlaid with Multiple Moving Averages (MMA’s) to determine the volatility of specific stocks.
1 Year: On the stockbroking floor this is probably the most common time frame and with good reason. My default template uses the 12 month chart because it provides enough detail for short-term trading, gives enough history to determine the stocks previous price movements, and shows any long or medium term trends that may be established.
5 Year: Only used by long-term investors. If you have an average investment timeframe less than 2 years, I feel the 5 year chart is of little benefit other than to determine the long-term trends and potential support / resistance levels.
Visit the All Ords page on MarketIndex.com.au for constituent details, share prices, sector breakdown and interactive charts.
Visit Incredible charts for basic charting software that covers ASX stocks.
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