The ASX200’s post COVID rally continues in earnest with the local market breaking above both its March high and the psychological 6500 level during yesterday’s session. The markets now rallied well over 10% in the last 3-weeks as stocks continue to embrace the US election, positive vaccine development and ongoing huge monetary & fiscal stimulus. Last week I wrote “My “Gut Feel” is the buying in the banks and resources will continue but the aggressive selling of some tech names will abate pushing the underlying index higher.” – this has been on the money recently and we see no reason to doubt a further extension of this new trend into Christmas but after an almost vertical style rally some decent pullbacks or at least consolidation is inevitable.
