The ASX200 was already strong before the RBA’s move yesterday but it literally took off following the moderate 0.25% hike, the market ultimately closed up +1.65% within striking distance of the psychological 7000 area. With the index up 113-points and all 11 sectors rallying not surprisingly gains were broad-based, the “risk on” theme is slowly gathering momentum courtesy of fund managers holding their highest cash position in more than 20 years i.e. there’s nobody left to sell, and a degree of ‘Fear of missing out” (FOMO) feels inevitable if stocks remain firm.
- Since the market tested 6400 in October we have been targeting the 7200 area in Christmas but that is now only 3% away hence I remind subscribers of our caveat that surprises are likely to be on the upside.
MM believes the ASX200 will test the 7200 area into Christmas
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