This morning at 7am, New Zealand’s RBNZ cut interest rates to 3% from 3.25% and importantly stated that further easing seems likely, citing further weakness in the NZD as necessary. This rhetoric is incredibly close to that of our own RBA and one of the reasons why at MarketMatters, we believe Australian interest rates will again be cut from 2% to at least 1.75%. Countries who are strongly influenced by commdities are hurting badly, Canada who recently also cut interest rates is now technically in recession as it suffers specifically from a plunging oil price. While Canada is more dependant on oil and North America, compared to Australia with Iron Ore/Coal and China, the strong implication is the cash rate is likely to stay low or go lower in Australia.

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Afternoon Report Wednesday 22 July 2015

July 22nd, 2015 by james Carter

• A busy morning was seen in the ASX 200 opening on its session’s highs at 5696, only to drift lower and close on its lows at 5614, down 92 points (-1.6%).
• There were no positive catalysts on investors’ sights, the broader market sold off and both the Bank and Iron Ore sectors were the dead weights today. Commonwealth Bank (CBA) ended 1.7% lower at $86.63, while RIO Tinto (RIO) lost 2.3% at $52.18.
• As mentioned to our subscribers, we have switched out of one of our trading stocks into our current convictive sector.

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Morning Report Wednesday 22 July 2015

July 22nd, 2015 by james Carter

This morning we have arrived at work to see the Dow down 181 points and after-market, Apple Inc. has reported a disappointing number, resulting in the stock falling almost 9% in extended trading, this would likely equate to an overall ~300 point decline for the Dow. Ideally the US market will still make fresh 2015 highs, but their market, unlike Australia, is optimistic going into reporting season. Hence when companies disappoint, they get hammered e.g. last night APPLE, YAHOO, IBM and United Technologies. This is not the main action catching our eye, a few other pieces of the puzzle are coming together nicely that must be watched carefully as we look for a significant top in equities. Not all of the below are significant market new,s but its these signals, that we have been watching for a while, that ultimately lead to us to trigger action.

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Afternoon Report Tuesday 21 July 2015

July 21st, 2015 by james Carter

• The ASX 200 had a quiet, but reasonable day today, ending 20 points higher (+0.4%) at 5,707.
• Three of the Big Four Banks helped push the market steadily higher during the day, with Commonwealth Bank (CBA) the weakest link, finishing down 26c to $88.10. Meanwhile Australia New Zealand Bank (ANZ) rose 20c to $33.05, Westpac Bank (WBC) up 30c to $34.90 whilst National Australia Bank (NAB) was the slight winner on the day, up 33c (1.0%) to $34.77.
• Whilst Iron Ore was trading 1% higher in Asia, the major players ended lower – BHP finished 0.6% lower at $26.82 and RIO down 0.9% at $53.38.
• OZ Minerals (OZL) lost 1.6% at $3.75 after announcing a strong quarterly report as investors remain frustrated with OZL’s patience for its “hunt” for acquisition.
• Investors welcomed the quarterly production and full year production guidance in Oil Search (OSH), ending the day 3.9% higher at $7.22.
• The gold stocks that we’ve been following had a mixed day, even though the price of gold rose during its Asian session. Newcrest Mining (NCM) finished down 1.5% (18c) to $11.69, Oceanagold (OGC) was also weaker -18c (5.7%) to $2.64, whilst Northern Star (NST) was up 6c to $2.13.

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Morning Report Tuesday 21 July 2015

July 21st, 2015 by james Carter

Do We Buy Commodities as they make multi year lows?

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Afternoon Report Monday 20 July 2015

July 20th, 2015 by james Carter

• The ASX 200 was very quiet today after a mixed bag of results from overseas markets at the weekend. The ASX 200 finished up 17 points (+0.3%) to 5,687.
• The major movement came from the gold sector after the metal was sold down heavily over the weekend. Newcrest Mining (NCM) was down $1.30 (10.0%) to $11.87. Regis Resources (RRL) dropped 10c (7.30%) to $1.34 (we remain trade buyers of RRL).
• Speculation has been rife for a long time concerning gold and how much had been bought by China. On Friday the Chinese Central Bank disclosed its reserves were 1,658 tonnes at the end of June, an increase of 57% from the last time it publish its reserves in 2009. Despite the tonnage increase, gold now accounts for 1.65 per cent of China’s total forex reserves, against 1.8 per cent in June 2009
• On the stronger side of the market the banks were generally up across the board, albeit to varying degrees. Commonwealth Bank (CBA) was up 38c (0.4%) to $88.36 and Australia New Zealand Bank (ANZ) up 41c (1.4%) to $32.85, whilst Westpac Bank (WBC) finished Westpac Bank (WBC) was only up 3c to $34.60.