It was a story of one step forward and one step back today – the morning looked promising as the index crept up 50 points and knocked on the door of the 8,350 level, but buying grew tired and sellers flocked in to square away positions for the holiday period as we closed where we set off for the day.
Today’s price action is typical of this time of year as many wind down for Christmas – moves get amplified on low volume and the market can start to trade in a more exaggerated way.
Macro dominated the ASX today with the markets losing streak extending to 5 sessions - a drought of corporate announcements as we crawl into 2nd half of December with many businesses entering shutdowns over the holiday period.
The index closed lower for the 4th straight session, breaching the 8300 level but finding some support and bouncing 40 points off its lows, the ‘Santa Rally’ now well and truly in reverse with the market having retraced 3 weeks of gains.
A soft session locally with the kibosh put on a positive open mid-morning as employment data was stronger than expected casting a shadow over the RBA’s new found dovish stance, the market quickly bringing back the probability of a February cut to a coin toss.
It was all about rate expectations today after the RBA commentary yesterday afternoon, with limited news on the corporate front. Stocks sensitive to a cut crawled higher, and some of the more crowded trades reversed - real estate and consumer discretionary all alone in the green as the other nine sectors fell. The index moved lower from the opening bell and didn’t look like recovering.
An interesting session for the ASX today with some aggressive rotation out of the highflyers into the beaten-up miners following news of further Chinese stimulus.
The ASX sank early today down ~50pts by 11am before producing a very solid come-back to finish a whisker higher – a strong effort really ahead of the RBA decision on rates tomorrow and a mixed day for the banks with ANZ announcing a new CEO.
Some selling pressure swept across the ASX today with over 70% of the main board finishing lower. We’ve talked about the declining momentum on the upside, and while it’s too early to conclude the bullish trend is over, some consolidation at least wouldn’t surprise.
While the market continues to edge up, it’s becoming very stock specific and we are seeing some obvious loss of momentum in to fresh all-time highs. Some profit taking in banks becoming obvious while resources by in large remain friendless.
Today’s price action is typical of this time of year as many wind down for Christmas – moves get amplified on low volume and the market can start to trade in a more exaggerated way.
Macro dominated the ASX today with the markets losing streak extending to 5 sessions - a drought of corporate announcements as we crawl into 2nd half of December with many businesses entering shutdowns over the holiday period.
The index closed lower for the 4th straight session, breaching the 8300 level but finding some support and bouncing 40 points off its lows, the ‘Santa Rally’ now well and truly in reverse with the market having retraced 3 weeks of gains.
A soft session locally with the kibosh put on a positive open mid-morning as employment data was stronger than expected casting a shadow over the RBA’s new found dovish stance, the market quickly bringing back the probability of a February cut to a coin toss.
It was all about rate expectations today after the RBA commentary yesterday afternoon, with limited news on the corporate front. Stocks sensitive to a cut crawled higher, and some of the more crowded trades reversed - real estate and consumer discretionary all alone in the green as the other nine sectors fell. The index moved lower from the opening bell and didn’t look like recovering.
An interesting session for the ASX today with some aggressive rotation out of the highflyers into the beaten-up miners following news of further Chinese stimulus.
The ASX sank early today down ~50pts by 11am before producing a very solid come-back to finish a whisker higher – a strong effort really ahead of the RBA decision on rates tomorrow and a mixed day for the banks with ANZ announcing a new CEO.
Some selling pressure swept across the ASX today with over 70% of the main board finishing lower. We’ve talked about the declining momentum on the upside, and while it’s too early to conclude the bullish trend is over, some consolidation at least wouldn’t surprise.
While the market continues to edge up, it’s becoming very stock specific and we are seeing some obvious loss of momentum in to fresh all-time highs. Some profit taking in banks becoming obvious while resources by in large remain friendless.
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