Good recovery from the market today after early sell off…
A fairly soggy start this morning for the market with a selloff in the first hour of trade before buyers stepped up and stocks rallied for the rest of the session. We had a range today of +/- 32 points, a high of 5747, a low of 5715 and a close of 5746, up +17pts or +0.29%. Resources the main driver today with the sector up +1.13% while financials chimed in by adding +0.32%. After a poor week just gone, Telstra (TLS) saw some buying today finishing at $4.64, up +1.09% on the day which helped to support the broader Telco space. Elsewhere, some the
ASX 200 Intra-Day Chart
ASX 200 Daily Chart – good come back today after early weakness
We had a raft a Fed Speakers in the US on Friday night and it’s now clear that we’ll see a rate hike in the US this month, and another two at some stage this year. The market took it in its stride on Friday night and we actually saw the $US finish the session lower. Futures now implying a 94% chance of a hike. We plan to cover more of this in the AM report tomorrow morning and the key take outs in terms of positioning, and why we could revisit some of the unloved ‘yield names’ even though rates are moving higher.
image001 Source; Bloomberg
Reporting season locally is now done and dusted….and overall it was good, with more beats than misses on both a revenue and EPS. Here’s a good chart from UBS which looks at sectors from a bottom up perspective. Clearly, the market growth is coming primarily from resources…hence buying the dips in this sector makes sense for now.
The Oil stocks have been interesting of late with the Oil price staying firm while stocks have actually been weak. We owned Origin (ORG) towards the end of 2016 but sold out around $7. The underperformance here in recent times v the Oil price is fairly clear to see, and is another example of why being more dynamic in portfolio allocations makes sense. Another opportunity here seems close at hand.
Origin Energy (ORG) Daily Chart
Origin v Oil Price – ORG too weak or Oil to strong?
In terms of the market this month, it’s worth re-printing our biases for March – as it’s often a frustrating month for investors – mostly tracking sideways, before a lift in April. Overall we currently anticipate March will be relatively quiet for MM with our focus on potential further "tweaks" to our portfolio and buying into the currently unfolding weakness in the resources sector..
Have a great night,
The Market Matters Team
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 06/03/2017. 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
