Australian Investment Blog

Market Data

WHAT MATTERED TODAY
1. Easter seems to be looming large on the ASX + other global markets with most minds on chocolate eggs and an extended break. Values were light, about $3.9b, while volatility is being crushed. The index tried again to push towards 5200 – hitting a high of 5181 before selling off into the close – to finish at 5166

2. As we covered in the morning note, the market is complacent, which is shown via the volatility index trading at fresh lows for 2016. Complacency is dangerous, and from an Options perspective, we simply don’t get paid adequately for risk – so we reduce our exposure.

3. The last time we saw the VIX trading sub 14 was in December 2015 – which corresponded with a shorter term market high. The time before that was in October 2015 – again, the corresponded with a short term market high

4. So, from a shorter perspective, there are a few indicators suggesting that we’re likely to take a breather – which has been playing out this week.

5. We came across an interesting chart from JP Morgan recently, highlighting the typical stages of a mining cycle….It’s relevant given we’re coming from the depths of despair in that sector – and it is cyclical. Things will get better. Take note at the labels marked in blue – this is where JP Morgan think we are now which we tend to agree with;

ASX 100 Moves

Regards From,

The Market Matters Team.

28-34 O'Connell St

Sydney, NSW 2000

All figures contained from sources believed to be accurate. MarketMatters 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 22/03/2016. 4.13PM.

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