Another solid session to kick off the trading week although it’s not without frustration given the bid for Vocus (VOC) from a consortium led by Macquarie Infrastructure a few days after we sold the stock in our growth portfolio!! Markets can slap you down sometimes and this was certainly one of those instances, however softening the blow was Zip Co (Z1P) which rallied well today (+12.9%) hitting $10.33.
The local market surged into the weekend, more than covering yesterday’s pullback to close at its highest level in 11-months. The panic low from early Monday is now an incredible 323pts/5% behind us now in less than a week’s trade as the market swiftly brushed the bearish case of the “Gamestop Effect” in favour of the bull case of Central Bank dovishness and improving economic data. Today that meant the market focussed on beats on initial jobless & continuing claims in the US.
The air was once again thin above the 6800 level on the ASX today with stocks pulling back from post pandemic highs. Retailers were in focus following a strong set of numbers by Nick Scali (NCK) while AGL Energy (AGL) showed why it’s been a good idea to avoid that dividend trap this year and last with a ~$3bn write down - from experience big write downs often happen at lows – more on both of these below.
The market hit a new post COVID-19 high today trading to 6852, up around 5% from the Monday morning lows in what was another broad-based rally across the market. 166 stocks closed higher in the ASX 200 today, two stocks we’ve been talking about of late, Virgin UK (VUK) and Corporate Travel (CTD) led the charge adding +14% & 6% respectively. Gold was on the nose as money abandoned safe havens although the broader resource trade also struggled.
Last week’s pullback now seems a distant memory as the market roars back to life, the ‘Robinhood Rout’ seemed to be a convenient excuse for the market to have a break, rinse out the weak longs before the reality of low interest rates and abundant stimulus once again becomes the dominate theme.
A strong turnaround from stocks today after trading sharply lower in early trade. At its worst the ASX 200 was down -90pts hitting a low of 6517 smack on 11am. It’s uncanny how often the market makes a pivot point around 11am after margin calls filter through early, stocks get dumped and then cooler heads prevail. We’d been targeting a move down to 6500 and todays bounce (for now at least) from that level looks a solid one as the intra-day chart below clearly shows
The day started on the front foot with most stocks/sectors rebounding after yesterday’s deep slide but the best of it was certainly seen early. The ASX200 hit its peak at around 10.30am, topping 80pts higher before a slow and steady wave of selling set in for the rest of the session. At its worst, the index was down -64pts, breaking through the 6600-support level before some bulls returned from lunch and softened the blow.
The GameStop effect took hold of the local market today, with the ASX falling 130pts, the most in more than 3 months as markets globally took notice of the targeted buying of GameStop overnight. For those that missed the news, a group from an online forum took on a number of funds that had shorted shares in the US listed video game retailer, bidding up the stock in a frenzy which eventually saw shares in the struggling company more than double overnight on its fourth consecutive day of gains.
A soft return for the local market today following yesterday’s holiday. Iron ore names were the biggest weight on the index as the commodity price took a step back from its soaring heights with traders concerned with tight steel margins
A quiet session for the ASX today with the bulk of the market taking the day off to make a 4 day weekend with Australia Day tomorrow – makes sense, although there were a few in office that got ‘stuck on the desk’ like I did. The retailers and IT stocks were the best on ground today while another 4% gain in Fortescue Metals (FMG) helped to support the material sector – we touched on FMG in the AM note today, expecting a big earnings / dividend number in February.
The local market surged into the weekend, more than covering yesterday’s pullback to close at its highest level in 11-months. The panic low from early Monday is now an incredible 323pts/5% behind us now in less than a week’s trade as the market swiftly brushed the bearish case of the “Gamestop Effect” in favour of the bull case of Central Bank dovishness and improving economic data. Today that meant the market focussed on beats on initial jobless & continuing claims in the US.
The air was once again thin above the 6800 level on the ASX today with stocks pulling back from post pandemic highs. Retailers were in focus following a strong set of numbers by Nick Scali (NCK) while AGL Energy (AGL) showed why it’s been a good idea to avoid that dividend trap this year and last with a ~$3bn write down - from experience big write downs often happen at lows – more on both of these below.
The market hit a new post COVID-19 high today trading to 6852, up around 5% from the Monday morning lows in what was another broad-based rally across the market. 166 stocks closed higher in the ASX 200 today, two stocks we’ve been talking about of late, Virgin UK (VUK) and Corporate Travel (CTD) led the charge adding +14% & 6% respectively. Gold was on the nose as money abandoned safe havens although the broader resource trade also struggled.
Last week’s pullback now seems a distant memory as the market roars back to life, the ‘Robinhood Rout’ seemed to be a convenient excuse for the market to have a break, rinse out the weak longs before the reality of low interest rates and abundant stimulus once again becomes the dominate theme.
A strong turnaround from stocks today after trading sharply lower in early trade. At its worst the ASX 200 was down -90pts hitting a low of 6517 smack on 11am. It’s uncanny how often the market makes a pivot point around 11am after margin calls filter through early, stocks get dumped and then cooler heads prevail. We’d been targeting a move down to 6500 and todays bounce (for now at least) from that level looks a solid one as the intra-day chart below clearly shows
The day started on the front foot with most stocks/sectors rebounding after yesterday’s deep slide but the best of it was certainly seen early. The ASX200 hit its peak at around 10.30am, topping 80pts higher before a slow and steady wave of selling set in for the rest of the session. At its worst, the index was down -64pts, breaking through the 6600-support level before some bulls returned from lunch and softened the blow.
The GameStop effect took hold of the local market today, with the ASX falling 130pts, the most in more than 3 months as markets globally took notice of the targeted buying of GameStop overnight. For those that missed the news, a group from an online forum took on a number of funds that had shorted shares in the US listed video game retailer, bidding up the stock in a frenzy which eventually saw shares in the struggling company more than double overnight on its fourth consecutive day of gains.
A soft return for the local market today following yesterday’s holiday. Iron ore names were the biggest weight on the index as the commodity price took a step back from its soaring heights with traders concerned with tight steel margins
A quiet session for the ASX today with the bulk of the market taking the day off to make a 4 day weekend with Australia Day tomorrow – makes sense, although there were a few in office that got ‘stuck on the desk’ like I did. The retailers and IT stocks were the best on ground today while another 4% gain in Fortescue Metals (FMG) helped to support the material sector – we touched on FMG in the AM note today, expecting a big earnings / dividend number in February.
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