Australian tech rallied strongly yesterday enjoying over 90% of the major names closing up on the day while over a quarter of them rallied by 4%, or more. The Technology Sector may only be 5.2% of the ASX200 but it has a larger sentiment influence in our opinion and if / when it looks good the index usually follows although unlike the US the local names have been a distinct laggard in 2021.
MM took profit on our local tech facing ATEC ETF around todays levels back in early June which feels warranted from an opportunity perspective but a break towards higher prices now feels likely into Christmas – another bullish read through for the ASX200. It will be interesting to observe if tech underperforms if US bond yields rally as we expect into next year i.e. the historical relationship is yields up leads to value outperforming growth.
MM remains bullish Australian Tech
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