Morning Report Friday 31 July 2015
Happy Friday all, sorry about the delayed report this morning.
We have witnessed a poor performance from the Diversified Financials, in a week that has seen steady gains. Interestingly, this sector is often a good gauge of the overall index going forward, where we anticipate a decent correction in the near term.
1 Perpetual (PPT) - Technically bearish, targeting the $40 region, around 10% lower hence sell any strength like today.
2 Magellan Group (MFG) - Technically bullish, eventually targeting fresh 2015 highs. Buy any weakness.
3 Henderson CDI (HGG) - Technically bearish, targeting sub $5.20, around 10% lower. Hence sell any strength like today.
After selling our balance in Bank of Queensland (BOQ) and Mirvac (MGR), our cash levels have increased to ideally buy any decent correction led by the US. Hence, we would especially be sellers of PPT and HGG at current levels. Overall we are likely to be patient over the coming weeks to evaluate movements in the US Indices, which ideally will see one fresh high in 2015.
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