Australian Investment Blog

A quick focus on stocks as the ASX200 tries very hard With the Dow off 3.3% YTD and the ASX200 off 5.8% YTD it has been a tough year in the market. On Thursday and Friday night though the Dow fell a combined ~600 points but the ASX200 managed a small positive gain, a very impressive performance - see charts 1 & 2. With a potential Christmas rally on hand, it's important to keep an eye on the existing Market Matters portfolio as targets may be reached over the next 1-2 weeks.Market Matters believes any rally towards 5300 or above is an ideal opportunity to lighten overall equity exposure or write call options against some positions depending on what investors prefer or use.

1. Ansell (ANN) $20.25 – ideally target sits in the $23-$25 region – potentially looking to exit half size positions at each level. Should benefit from the stronger U.S dollar due to how they report earnings. It has been a wild ride though and we would prefer to get out at a small profit and re-evaluate. 2. ANZ Bank (ANZ) $26.79 – ideally target sits in the $28.50-$29 region – or alternatively, sell call options against the holding around those levels.
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