Morning Report Tuesday 22 April 2014
Equity markets can be very fickle and often possess short memories. With both Apple and Facebook reporting this week, we could easily see the villain of the last few weeks become the hero, i.e. highly valued tech stocks. If these two influential stocks report well, I can easily see fresh 2014 highs from US indices - this should especially help our long Seek (SEK) position.
I remain bullish the banks into Wednesday’s option expiry (short squeeze) and potentially into approaching reporting / dividends.
Both Westpac and ANZ are likely to trade at all-time highs this week and CBA may not be far behind.
As I have been repeating over recent weeks, one of my main “plays” for 2014 is to switch out of banks into growth / recovery stories, as I believe the market will focus on interest rates rising in 2015.
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