Morning Report Wednesday 11 March 2015
Hopefully today is Buy Buy Buy and not Bye Bye Bye!!!
When markets approach my anticipated inflection points I like to become very focused, this is when returns are made, or lost of course. I have been predicting for the last 2 weeks that the ASX200 will retrace back around 220-points, and 7 trading days later we have arrived – see chart 1. After last night’s 333-point plunge in the Dow, strap yourself in because we will open there this morning, around 5760 (60 points lower) – the ASX200 will be trading back to the levels of mid-February prior to the surprise rate cut for Australia – see chart 2. The question arises is when do we commence buying?
• Last week’s big range in the ASX200 was 128-points, today is likely to take this week to around 120-points, which should offer at least some temporary support today.
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