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The ASX200 succumbed to broad based selling on Tuesday, only the IT Sector managed to close in positive territory while the resources led the declines – the stock and sector rotation continues almost day to day, anybody attempting to identify a clear trend looks destined for disappointment. As we often say the market will be there tomorrow and it usually tells us where it wants to go hence be patient and don’t force an opinion too firmly on this market while its treading water i.e. MM is still bullish while being conscious…
A poor session today for Aussie stocks with the market selling off throughout the session, again hitting its head on this stubborn wall of resistance ~7480 as weakness amongst the commodity stocks weighed on the broader market, although only one sector (IT) finishing in the green shows how broad based the decline was.
On Monday the ASX200 tried and failed yet again to break through the 7480 barrier, perhaps it will be 8th time lucky. By lunchtime yesterday it actually felt like the local market was going to break out above its October / November high but the buyers aggressive morning appetite faded after lunch although we still managed to close within 10-points of MM’s technical breakout level. We are mid-way through November and its range is less than half of the monthly average through 2021 which implies a break above 7480…
A reasonably muted start to the week for equities which tracked higher through the morning before giving around a quarter of the gains throughout the afternoon. Buyers tried to see the index close through the key 7480 level we discussed in the morning report with buying on the close getting to within touching distance, just 10pts away. Still, a better than expected start to the week with futures initial pointing to a flat session.
Global stocks are hovering around their all-time highs impressively ignoring a sharp move higher by inflation and subsequent surge in global bond yields, most subscribers probably have a handle on the numbers by now:
Friday saw the AX200 close out the week little changed courtesy of a 4.7% rally by the Resources Sector, the other 10 sectors all declined over the week with the interest rate sensitive Healthcare, Real Estate and IT Sectors worst on ground. The local index actually felt worse last week due to the broad based nature of the selling but we’re still only 2.5% below Augusts all-time high. We witnessed another failed attempt on the 7475 resistance level on Friday, if / when we close above 7480 don’t be short is the message I would pass on to traders.
A good way to end a volatile week with the ASX up ~0.80% and despite a few large swings and the feeling of a tough week, the market actually only ended at 7443, down 0.19% and just ~30pts below key resistance. Healthcare, Real-Estate & IT stocks were the 3 laggards which is understandable given the backdrop of higher rates although all sectors bar Materials finished in the red. Resources had a great week underpinned by a resurgence in Gold, a bounce in Iron Ore and continued strength in battery metals, the sector up nearly 5% which is encouraging given our large tilt towards this space.
The ASX200 saw some standout sector reversion yesterday plus some rare selling in the futures market following weak local employment data, ultimately we saw the index fall 0.57% as the broad based selling led to almost 70% of the index close in the red. The iron ore stocks offered some rare strength to the index while weakness was noticeably endured in the Healthcare, Energy and IT Sectors. The choppy price action continues with the index trading in an almost 100-point range on Thursday before closing almost smack bang in the middle of the day’s action while sectors that have been…
A very volatile session today for local stocks as big volume through the futures market pushed the market down ~40 points in short order this morning ahead of a much weaker than expected employment print provided the catalyst for another leg lower – the ASX 200 down -94points at the lows, before a spirited fightback after lunch meant we closed +52pts up from the days nadir. Not one for the faint hearted today and the volatility was very much focussed locally.
Flagship Growth Portfolio: Selling Z1P & buying NST
Active Income Portfolio: Selling IAG, adding to BHP & buying MFG
Emerging Companies Portfolio: Selling KGN & buying SSG
