Morning Report Monday 14 December 2015
When the going gets tough the tough get going!Good morning everyoneOverviewExcuse the title of the morning’s note being a little corny but recent times have been the toughest in Market Matters’ history so this is how it feels this morning.With market volatility increasing as we approach the widely predicted interest rate increase in the US it's time to focus on the market position as a whole. Market Matters recent call to buy BHP around $21.50 arguably saw the most criticism since our inception, clearly not our finest hour and one we have apologised for a few times. Be Assured, we also feel your pain.What's interesting is that it unfortunately feels like far more people bought BHP in the low $20's than followed us to sell it at ~$35 - investors still want to love the OLD "Big Australian". BHP has now crashed under its GFC levels in the mid $18 region and is set to open around $16.50 today - see chart 2.Market Matters currently believes that BHP and resources generally is just too hard and an area to steer clear of for the present. Momentum clearly remains to the downside.Turning to the MarketsThis morning's press is up to its old tricks calling a plunge for the ASX200 courtesy of the 310 fall by the Dow, the previous Friday’s 370 point rally was hardly noticed by our journalist friends. Nevertheless, the US market remains relatively strong since its August lows, still up 12.3% over the last 5 months - see chart 1.
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