Indices: Australian ASX 200
Even though the ASX200 index isn’t our main focus obviously we do keep a handle on it and ideally, September will deliver a period of consolidation similar to that experienced in late June which is shown on the chart below in yellow. MM is simply looking to accumulate stocks/sectors we like into pullbacks which will probably flow through to some further index weakness – that’s obviously assuming our well-laid plans play out!
The ASX200 is falling as we’ve been anticipating although most of the action is unfolding on the stock & sector level, our best guess is the local index will consolidate around the 6900 area although considering our view on bonds and the current picture with some influential names a deeper move wouldn’t surprise us.
