A strong session to round out the week, the ASX managed to hold on to early gains today after dropping the ball all other days this week. Tech was best as growth names get picked up off the floor. Resources were riding the coat tails of the risk on attitude from the market movers. The staples and financials lagged the market though still managed a small gain.
Another choppy day for the ASX with one way traffic on the sell side for the morning before a midday low and a reasonable rally into the close before finishing flat. The ASX sell-off early was an anomaly from a regional perspective with Asian markets remaining flat as did US Futures however that didn’t last long and we saw some reasonable buying in the second-half of the day.
The ASX opened better than it closed today with the 6800 level on the ASX once again providing an impenetrable barrier. The early high of 6806 was made 20mins after the open and the rest of the day was one way traffic before we eventually closed at 6714. There was a clear move out of the recently strong banks, resources & energy today, back into growth, however it was far from convincing while overnight buying in Gold saw the precious metal stocks do pretty well.
The market ended up today although again, it was a long way from the daily highs as traders sold the move above 6800 – seems a similar sort of story we’ve been writing about for the past 5 weeks. Today however, there was a change in the way the market is treating ‘growth’ with a capitulation style sell-off early met with buying and a clear rotation back into that part of the market. This is aligned with MM’s recent calls for some reversion to play out here i.e. buy growth in the short term – more on this below.
Today's session promised so much at the outset but delivered so little with the ASX 200 finishing ~100pts from the early morning highs. The bullish backdrop of what looked to be a short term top in bond yields, the passing of a US stimulus package + positive data from China over the weekend had stocks well bid on open with the market trading up to a 6835 high, only for sellers to kick into gear around lunchtime and push stocks back towards 6700. The performance gap continues to open for the market with the IT sector down -1.14% today while the Materials rallied +1.65% showing that the right sector calls are so important in this sort of market as the macro backdrop plays the tune for stocks.
A lot occurred underneath the hood this week however overall, the ASX added ~0.5% to finish around the 6700 handle, after being both higher and lower over the 5 days. As we highlighted in today’s morning note, the best way to highlight what’s happened this week is by looking at the extremes in terms of stocks / sectors. ANZ was the best performer in the ASX 200 this week adding 10% versus IDP Education (IEL) which fell 13%. The market remains split in half between the sectors / stocks that like higher interest rates, and those that don’t. See table below.
Volatility has kicked up on the market with a big range playing out today, buying amongst the banks / financials offset by decent weakness in the healthcare sector. A lot of stocks traded ex-dividend today and that took about ~25pts from the market, so it looked worse than it actually was but still, there were clear pockets of decent selling, CSL for instance went Ex-Divi for ~$1.34 and fell $11.17. BHP and RIO were also trading Ex-dividend today which talked to the weakness in the Material sector today.
The ASX looked very weak this time yesterday after dropping 100pts from the morning high, however the old mantra of buy weakness, sell strength has clearly remained in play. It feels like this saying (for MM at least) is becoming repetitious however that’s often the case in markets, things repeat themselves, until they don’t!
In with a bang, out with a whimper today. Equities were well bid early with stimulus & QE back on the agenda in the US. From there though, the sellers had the upper hand – China’s banking regulator warned of asset bubbles and signalled it would look to reduce leverage in its system. That set off a chain of selling in the region seeing Asian markets slide from ~1% up to ~1% down. The local market faired a touch better than its regional peers, though still finishing the day ~1.5% below the intraday high.
A bullish session for the ASX to correspond with the roll out of the new MM website – hope it’s a good omen! Many of you have sent through positive comments, thank you, and a few have had some frustrating login issues which I apologies about. We will get there and we are confident that the MM experience will only grow from here as the depth of content expands over time. If you have further feedback, we’d love to hear it.
Another choppy day for the ASX with one way traffic on the sell side for the morning before a midday low and a reasonable rally into the close before finishing flat. The ASX sell-off early was an anomaly from a regional perspective with Asian markets remaining flat as did US Futures however that didn’t last long and we saw some reasonable buying in the second-half of the day.
The ASX opened better than it closed today with the 6800 level on the ASX once again providing an impenetrable barrier. The early high of 6806 was made 20mins after the open and the rest of the day was one way traffic before we eventually closed at 6714. There was a clear move out of the recently strong banks, resources & energy today, back into growth, however it was far from convincing while overnight buying in Gold saw the precious metal stocks do pretty well.
The market ended up today although again, it was a long way from the daily highs as traders sold the move above 6800 – seems a similar sort of story we’ve been writing about for the past 5 weeks. Today however, there was a change in the way the market is treating ‘growth’ with a capitulation style sell-off early met with buying and a clear rotation back into that part of the market. This is aligned with MM’s recent calls for some reversion to play out here i.e. buy growth in the short term – more on this below.
Today's session promised so much at the outset but delivered so little with the ASX 200 finishing ~100pts from the early morning highs. The bullish backdrop of what looked to be a short term top in bond yields, the passing of a US stimulus package + positive data from China over the weekend had stocks well bid on open with the market trading up to a 6835 high, only for sellers to kick into gear around lunchtime and push stocks back towards 6700. The performance gap continues to open for the market with the IT sector down -1.14% today while the Materials rallied +1.65% showing that the right sector calls are so important in this sort of market as the macro backdrop plays the tune for stocks.
A lot occurred underneath the hood this week however overall, the ASX added ~0.5% to finish around the 6700 handle, after being both higher and lower over the 5 days. As we highlighted in today’s morning note, the best way to highlight what’s happened this week is by looking at the extremes in terms of stocks / sectors. ANZ was the best performer in the ASX 200 this week adding 10% versus IDP Education (IEL) which fell 13%. The market remains split in half between the sectors / stocks that like higher interest rates, and those that don’t. See table below.
Volatility has kicked up on the market with a big range playing out today, buying amongst the banks / financials offset by decent weakness in the healthcare sector. A lot of stocks traded ex-dividend today and that took about ~25pts from the market, so it looked worse than it actually was but still, there were clear pockets of decent selling, CSL for instance went Ex-Divi for ~$1.34 and fell $11.17. BHP and RIO were also trading Ex-dividend today which talked to the weakness in the Material sector today.
The ASX looked very weak this time yesterday after dropping 100pts from the morning high, however the old mantra of buy weakness, sell strength has clearly remained in play. It feels like this saying (for MM at least) is becoming repetitious however that’s often the case in markets, things repeat themselves, until they don’t!
In with a bang, out with a whimper today. Equities were well bid early with stimulus & QE back on the agenda in the US. From there though, the sellers had the upper hand – China’s banking regulator warned of asset bubbles and signalled it would look to reduce leverage in its system. That set off a chain of selling in the region seeing Asian markets slide from ~1% up to ~1% down. The local market faired a touch better than its regional peers, though still finishing the day ~1.5% below the intraday high.
A bullish session for the ASX to correspond with the roll out of the new MM website – hope it’s a good omen! Many of you have sent through positive comments, thank you, and a few have had some frustrating login issues which I apologies about. We will get there and we are confident that the MM experience will only grow from here as the depth of content expands over time. If you have further feedback, we’d love to hear it.
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