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The ASX200 rallied over 0.5% yesterday although it was up over 1% moving into lunch before we saw some weakness creep into the Resources & Energy Sectors. However it was still a solid session for the local index which enjoyed over 65% of stocks on the main board advance with a few noticeably accelerating north i.e. 6 stocks rallied by over 5% while only 1 culprit retreated by the same degree.
The ASX rallied today although it did finish ~35pts below the morning high and there was a big market on close (MOC) order that sent the index ~15 points lower in the match, still the market continues to climb the wall of worry no doubt frustrating the bears in the process. IT stocks led the line again today up more than 1% while Energy stocks fell by a similar margin.
The ASX200 surrendered early gains on Tuesday to end the day marginally lower as some of the large miners weighed on the index e.g. BHP Group (BHP) -2% and RIO Tinto (RIO) -3.25%. The RBA released its “minutes” at 11.30am on Tuesday, the unveiling of Philip Lowe & Co’s thoughts at their most recent policy meeting 2-weeks ago took some of the puff out of the hawks sails, at least for a few days, which in the process led to some selling in the banks and resources i.e. the largest sectors in the ASX:
The ASX knocked it’s head at the 7400 resistance level today as weakness amongst the materials was offset by strength in the IT space, overall, a day that saw no real net gain/loss at the index level but again there was plenty happening under the hood as the RBA once again poured cold water on rate hikes.
The ASX200 edged higher yesterday even as more stocks retreated under the weight of rising bond yields and nervous US futures – more on the former later. The local market experienced pronounced sector rotation throughout the day as bond markets heavily influenced investors, I have seen a few overnight moves akin to this in 2021 but arguably none as dramatic intra-day:
The ASX managed to start the week in the black despite a shaky start today thanks to ~1% gains in both financials and materials. Bond yields were climbing throughout our session however it didn’t have an impact on the broader market with value stocks holding up well. There was plenty of corporate news coming through with a number of takeover offers in play.
Equity markets are often referred to as weighing machine since a famous investor from Omaha, Nebraska coined the phrase almost 50-years ago way back during the awful bear market of 1973-74. In our opinion the current market uncertainty and sector rotation is being caused by investors continually re-evaluating whether the strong post COVID economic recovery is going to be enough to offset the looming headwind of rising interest rates plus the increasing political inconsistencies from…
The AX200 enjoyed a strong end to the week making fresh highs for October on Friday as the unusual combination of Tech and Resources banded together to drag the index into positive territory for the week. Suddenly the statistics & seasonality factors are combining nicely for the bulls:
As we make new highs for the month on the 15th the strong likelihood is we’ve not only seen the low for October at 7157 but also the quarter which has very bullish implications.
The average quarterly range since the COVID outbreak is well over 500-points implying from extrapolation that there’s a strong likelihood that the ASX200 can achie
It’s been a very good second half of the week for the ASX as some positive company announcements drove 8 stocks in the ASX 200 up more than 10% on the week, fortunately for MM we hold 4 of them across portfolios and that’s led to a good pocket of outperformance. Today saw a carbon copy of yesterday in terms of both the IT & Materials sectors underpinning the rally while Utilities were the only area to finish the day lower.
The ASX200 closed up 0.5% on Thursday although it struggled after 3pm giving back almost half of its gains as fairly heavy selling rolled through the SPI futures. Investors still enjoyed over 70% of the main index close up on the day but some weakness in the banks was enough to drag the market back towards 7300, historically the banks are strong from now through until November with ANZ, NAB and Westpac all trading ex-dividend in the first half of next month but after such a stellar advance over the last year it may be too much to ask for standout ongoing strength…
