Aussie market really loses momentum
What Mattered Today
The US markets continue to look strong however our market once again struggled, trading well below the session highs courtesy of weakness across the healthcare sector. There was a decent amount of buying around the place early but from mid-afternoon the selling kicked in and the market dropped off a cliff (sort of)…
CSL was weak following comments overnight by President Elect Trump around drug makers which saw 18 of the 19 stocks in the S&P 500 in that sector hit hard by selling – CSL closed down -2.80% to $100.96 while Maybe Pharma (MYX) – which manufactures both branded and generic drugs was hit by more than 4%...clearly this sector is in the ‘Trump Crosshairs’ which is prompting us to re-evaluate CSL as an investment…
We had a range today of +/- 43 points, a high of 5801, a low of 5758 and a close of 5766, down -4pts or -0.08%.
ASX 200 Intra-Day Chart
ASX 200 daily chart
We sold Origin Energy (ORG) today around $7.00 which was our longer term target in the stock – booking a healthy 26% profit on the 5% holding in the portfolio. We’ve targeted the $7.00 region for some time and it’s pleasing to exit during a period where we’re looking to increase our cash position into strength...
Origin Energy (ORG) Daily Chart
Elsewhere, buying from yesterday’s low in Bellamy’s was short lived and the stock dropped another 17% today – fairly clear that short covering was all it was yesterday and the stock is likely to remain under pressure for some time yet. Bellamy’s problems will not be sorted in the short term, and in our view, a capital raising is likely.
Bellamy’s (BAL) Daily Chart
Sectors
ASX 200 Movers
What Matters Overseas
Disclosure
Market Matters may hold stocks mentioned in this report. Subscribers can view a full list of holdings on the website by clicking here. Positions are updated each Friday.
Disclaimer
All figures contained from sources believed to be accurate. Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy. Prices as at 12/01/2017. 5.00PM.
Reports and other documents published on this website and email (‘Reports’) are authored by Market Matters and the reports represent the views of Market Matters. The MarketMatters Report is based on technical analysis of companies, commodities and the market in general. Technical analysis focuses on interpreting charts and other data to determine what the market sentiment about a particular financial product is, or will be. Unlike fundamental analysis, it does not involve a detailed review of the company’s financial position.
The Reports contain general, as opposed to personal, advice. That means they are prepared for multiple distributions without consideration of your investment objectives, financial situation and needs (‘Personal Circumstances’). Accordingly, any advice given is not a recommendation that a particular course of action is suitable for you and the advice is therefore not to be acted on as investment advice. You must assess whether or not any advice is appropriate for your Personal Circumstances before making any investment decisions. You can either make this assessment yourself, or if you require a personal recommendation, you can seek the assistance of a financial advisor. Market Matters or its author(s) accepts no responsibility for any losses or damages resulting from decisions made from or because of information within this publication. Investing and trading in financial products are always risky, so you should do your own research before buying or selling a financial product.
The Reports are published by Market Matters in good faith based on the facts known to it at the time of their preparation and do not purport to contain all relevant information with respect to the financial products to which they relate. Although the Reports are based on information obtained from sources believed to be reliable, Market Matters does not make any representation or warranty that they are accurate, complete or up to date and Market Matters accepts no obligation to correct or update the information or opinions in the Reports.
If you rely on a Report, you do so at your own risk. Any projections are estimates only and may not be realised in the future. Except to the extent that liability under any law cannot be excluded, Market Matters disclaims liability for all loss or damage arising as a result of any opinion, advice, recommendation, representation or information expressly or impliedly published in or in relation to this report notwithstanding any error or omission including negligence.
To unsubscribe. Click Here
