Morning Report Monday 13 October 2014
On Sunday, I was pretending to be Darth Vader with my high pressure hose in the garden, when the mobile rang with the AFR looking for my thoughts on the oil price and equities. What I find interesting is not the phone call, but the fact that the journalists are now focusing on what will likely become a 9-10% correction in the ASX200 over the past 2 weeks, where a ~22% correction has already been seen in crude oil.
http://www.afr.com/p/markets/analysts_expect_shares_may_fall_JwG2JoVdwUuXCzdN7akrcO
Today we are faced with holidays in the US, Canada and Japan. This combined with Ebola reaching Texas may easily lead to a panic sell off under 5100 into major support. I reiterate that any panic into this area I believe should be bought for at least a 4-5% rally – see the weekend Hickman Report and Fear & Greed Index at extremes (chart 3). From an individual stock perspective, let’s cast our eyes on 3 big oil stocks:
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