The ASX200 is set to open around 10-points higher this morning remaining firmly in the trading range which commenced way back in early June, at times its been a frustrating 6-months where news both good & bad has failed to take the index to a new level, in either direction. I recall as we entered the current financial year writing that a few months consolidation felt likely and we actually drew the orange ellipse shown below for comparison to 2020, as we can now see history does repeat itself – in both 2020 and 2021 the ASX200 has indeed traded sideways in the 2nd half of the year, the question is now will / can we follow 2020 and deliver a classic rally into Christmas.
MM remains mildly bullish into 2022 due to the combination of seasonality factors and general “Gut Feel” courtesy of the market’s resilience but there are some storm clouds slowly forming on the horizon hence this feels an important time for investors to remain open-minded. The dominant stock and sector rotation we’ve seen this year feels likely to continue through 2022 especially as investors try and guess the path for interest rates.
MM remains cautiously bullish the ASX
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