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The ASX200 again rallied strongly after briefly dipping below the 7450 level – I’m almost getting bored of saying “buy the dip” but yet again the local market found a low just as Gladys delivered the NSW’s COVID statistics before enjoying solid buying throughout the day to reverse early loses and close marginally higher, a +1.2% intraday turnaround. Very similar to the trend in home schoolings, the low is certainly formed in the AM before a recovery plays out in the PM! Yesterday it was the unusual combination of IT, Gold and Reopening stocks led…
While a +5pt gain at the index level implies a lacklustre session, there was a lot happening under the hood + it was a major turnaround from early weakness which had the market hit a 7440 low before rallying unabated to close at 7528, a +88pt turnaround as the wall of money buys weakness. That is very typical of a strong market and while some will list all the entertaining reasons for a market top, the trend remains up and that’s all…
The ASX200 is a few days into what’s been a very quiet start to September, over the last decade August & September have combined to fall an average of -3.8% but last month’s +1.9% advance should have already warned statisticians that there’s nothing normal about the strength of the post COVID stock market rally – at MM we’re sticking with the trend of “Buy the dips but only fade the “pops” to new highs”. A quick comparison to the current rally with the one after the GFC illustrates…
The ASX200 has commenced September in similar fashion to most of the year, if the rhythm remains the same we are likely to see a breach of 7700 before we enter the final quarter of 2021. This weeks small gain was spearheaded by an aggressive advance by the medium size resource stocks e.g. Alumina (AWC) +19%, Whitehaven Coal (WHC) +18% and South32 (S32) + 13% who appeared to embrace any stabilisation by the commodities markets.
A solid end to the week with the ASX having a choppy but positive session on a beautiful spring day in Sydney. Resource stocks led the way today with the IT names lagged, a similar sort of session overseas last night with the cyclicals coming back into favour after stalling recently. The uranium stocks were on fire today while the rest of the commodity complex was strong. For the week, the ASX 200 added ~0.50% although there was significant influence from dividends.
The ASX200 slipped -0.55% yesterday but once we take out the huge dividends delivered to happy investors the market actually hardly moved e.g. BHP Group (BHP) $2.74, CSL Ltd (CSL) $1.64, Woolworths (WOW) 55c and Perpetual (PPT) 96c. Importantly these funds will drop into shareholders bank accounts around the end of September / start of October providing yet another tailwind for this already resilient market i.e. a significant portion of investors simply reinvest their dividends back into the market…
A similar session to yesterday with the market opening sharply lower before fighting back throughout the day – the buy the dip mentality still very much alive and well. Two index heavyweights traded ex-dividend today, namely BHP & CSL and while the ASX 200 closed down 41points, ~30points of that move was dividend related.
The ASX200 continued to follow the 2021 playbook yesterday by falling fairly hard into a 10.30 am low prior to grinding higher throughout the day, it finally closed 0.9% above the intra-day low, down just -0.1% i.e. “buy the dip” still reins supreme. Winners actually marginally trumped the losers with the banks in particular catching my eye on the upside with National Bank (NAB) popping +2.2% to make fresh post COVID highs. Septembers off and running and if the ASX200 dances to the same rhythm as it has since May we should be testing ~7700 in the coming weeks.
The ASX200 closed out August in a very similar fashion to much of the previous 6-months i.e. dipping into a mid-morning low before rallying steadily throughout the day. The steady buying was broad-based with almost 70% of stocks advancing although it again felt more like a lack of selling as opposed to an ongoing scramble for risk assets – it’s no great surprise the buying feels more restrained when we consider the ASX200 has already surged 1115-points / 17% from the first week of May. No change…
A lack of sellers it seemed into month end saw the ASX finish higher again today clocking up an 11th straight month of gains, its longest streak on record. Tech stocks followed a strong performance from the NASDAQ overnight to add nearly ¬2% on the day while the Energy sector fell despite Oil rallying overnight. For the month of August there was some sharp divergence between sector returns, IT storming 16.8% higher thanks…
