The ASX200 continues to demonstrate impressive resilience around the 6800 area again ignoring an average night on Wall Street on Tuesday, the path of least resistance still feels on the upside at least short-term. Yesterday it was the Resources Sector that supported the index while the consumer-facing stocks weighed on the market, this could easily be reversed over the next 24 hours depending on the inflation & interest rate news although it might take more than one good number to see investors embrace consumer-facing stocks i.e.– see Walmart (WMT US) news.
- We have been targeting the 6850-6900 area to de-risk our Flagship Growth Portfolio, another failed “pop” feels a strong possibility.
Overnight we saw US stocks drop ahead of the FOMC meeting while Walmart, the world’s largest retailer reaffirmed the impact of inflation pressures on consumer spending through another downgrade – Walmart (WMT US) tumbled -by 7.6% which helped drag online retailer Amazon.com down -5.3% in a negative sentiment downdraft. After the market we saw both Alphabet (GOOGL US) and Texas Instruments (TXN US) surge following strong earnings although this was partly offset by Microsoft (MSFT US) which delivered slowing sales growth, these moves on the stock level are likely to be overshadowed by the Fed tonight.
MM is neutral to slightly bullish the ASX200 short-term
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