Australian Investment Blog

How do the resources stocks look after the recent market kick?

Good morning everyone Overview Equities have enjoyed a strong 3 days since US equities made the recent fresh low for 2016 that Market Matters targeted in last week's Weekend Report. The Dow has rallied ~675 points (4.4%) and the local ASX200 has matched it all the way gaining 204 points (4.3%). US equities remain technically bullish almost unbelievably targeting fresh all-time highs and the ASX200 will remain positive while it can hold over 4820. While the banking sector is the goliath in the room for local markets, the resources have been steadily improving in the background as both Iron Ore and oil look to find a floor. Market Matters is holding three short term investments in the resources space that require careful monitoring - these are discussed closely below. It should be noted that while Market Matters is happy to be holding resource stocks short term it is not keen on their overall business model as they are "price takers" who cannot determine their own profitability. Turning to the Markets BHP Billiton (BHP) $16.59 We are currently enjoying our second foray into BHP but remain conscious that the stocks is in a clear downtrend / bear market.
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