ASX in the red with selling across the board
Not a lot of love in the market today with a sea of red across the board – the only couple of meaningful bright spots were in Fortescue Metals, Brickworks and Bellamy’s amongst the main coys in the 200 that closed in the green. The Banks provided a decent drag with the big 4 knocking -24pts from the index, however in fairness, the sell-off was very broad based. We called for some weakness earlier in the week and were wrong, with the mkt grinding higher however the selling today was fairly aggressive. We currently have cash in the MM portfolio of 23.5%, which feels nice on a day like this, however we are looking for opportunity into weakness – nearer 5500
As suggested this morning, overnight the broad US market reversed early strong gains led by the tech NASDAQ which closed down 0.57% after reaching 5996, just shy of our 6000-target area. We are now short term bearish US stocks after being bullish all year – we are targeting a 7% correction for the NASDAQ. Traders in the US last night appeared to be agree with us as they pushed up the “Fear Index (VIX)” over 5% as downside protection quickly came into vogue.
On the broader market today, the ‘defensive’ healthcare sector was the weakest link but all sectors closed in the red - an overall range of +/- 92 points, a high of 5785, a low of 5692 and a close of 5702, off -82pts or -1.42%.
ASX 200 Intra-Day Chart
ASX 200 Daily Chart
Have a great night
The Market Matters Team
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