Morning Report Wednesday 30 April 2014
After yesterday’s 100 point intraday plunge has the ASX200 we topped?
I was asked the above question by a number of people yesterday. “Probably not” is my flippant reply to the above, but it largely depends on approaching bank reports (ANZ on Thursday). I have repeated in a number of recent videos that tops are extremely hard to pick, last May we fell 93 points from the 15th, only to retrace all but 3 points of the fall prior to collapsing 618 points (11.8%) – see chart 1.
Simply, I believe the ASX200 is fully priced at these levels coming into a historically very weak seasonal period. Having decent cash holdings at these levels is very logical to me. I see great value around 5,100, fingers crossed for some bargains in coming months, BUT holding cash for a few months does no harm.
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