Morning Report Wednesday 7 October 2015
3 stocks / markets that may "spring" into Christmas!
The ASX200 has rallied 6.1% in an explosive 5 days, some consolidation would not be unusual after such a strong surge - see chart 1.
Similarly, the US equity market has recovered solidly and reached resistance that has capped the market for the last 4 weeks suggesting a likely breather.
If equities have completed a correction prior to a strong Christmas rally, fitting with seasonal characteristics, where should investors be looking?
As discussed yesterday, it’s usually the "beaten up stocks" that enjoy the best performance during a relief rally.
Nicholas Forsyth and the Market Matters team have managed money for some of the Australia’s elite and super rich. They now share their market insights daily via Market Matters. If you are not currently subscribed to Market Matters newsletter, you can sign up for free now.
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