A tough day at the office with the ASX getting hit hard right across the board, with corporate updates mostly on the softer side. All 11 sectors finished lower with 82% of the main board in the red implying there were very few places to hide, with the market closing smack on its lows.
While the market ultimately ended down a touch, there was some interesting price action intra-day in certain sectors, with the retailers well bid early on only to give up gains, Gold stocks rallied defying a recent pullback in bullion, while many of the miners recovered nicely from early weakness i.e. some signs playing out that recent trends may be approaching an inflexion point.
The ASX 200 came back and re-tested the prior breakout area today at 7900 (low of 7902), which in theory should provide a decent level of support given it took over 4-months and 4 failed attempts to leap over the milestone, which finally came on the 11th July. While only early days, we may well be seeing the formation of a new trading range, and the risk/reward stacks up to be a buyer ~7900, using 7850 as a point to raise the white flag, given a move through that level suggests the recent run towards 8100 was a false break. All very micro and index-orientated, but important nonetheless to determine whether the general market is in a risk-on or risk-off position. For now, support held, and we saw buying come in by the close.
A soft session played out on Friday, with the ASX down 64pts/0.81% at 7971, though we did see a decent recovery from the lows (up around 45pts),perhaps a result of a major IT issue caused by global Cyber Security firm CrowdStrike that impacted many of us, including the ASX. Short CrowdStrike, long Microsoft might be the play tonight!
Tech was knocked overnight and the trend continued locally today with the rotation out of the hotter stocks, into some of the more ‘boring’ sectors, while property took a breather amidst continued strength in employment which prompted interest rate traders to increase the odds for a hike.
The ASX200 pushed towards 8100 today, extending July's gains to 3.8% - so far, trumping July's average advance of the last decade by 0.8%. While it was a strong session, some selling became obvious late in the day and it wouldn’t surprise MM to see some consolidation play out from here, after a fantastic run.
A day of consolidation for the ASX with the market getting used to the ‘8 handle’, as recent trends extended i.e. Property up ~1% and resources down ~1% with the hangover of weaker Chinese growth lingering over the sector.
The market smashed through 8000 this morning on a clear breakout of its nearly 6-month-long trading range, hitting an early high of 8037, before tapering off into the back end of the session following softer Chinese GDP. All 11 sectors were higher, though most buying was targeted in the large caps with the Small Ords finishing flat.
The market broke to new all-time highs today, and held them, underpinned by broad-based strength with 85% of the ASX 200 ending the session higher, though there was an obvious change to market leadership, with property and consumer discretionary i.e. interest rates sensitive sectors leading the line, while small caps outperformed large.
While the market ultimately ended down a touch, there was some interesting price action intra-day in certain sectors, with the retailers well bid early on only to give up gains, Gold stocks rallied defying a recent pullback in bullion, while many of the miners recovered nicely from early weakness i.e. some signs playing out that recent trends may be approaching an inflexion point.
The ASX 200 came back and re-tested the prior breakout area today at 7900 (low of 7902), which in theory should provide a decent level of support given it took over 4-months and 4 failed attempts to leap over the milestone, which finally came on the 11th July. While only early days, we may well be seeing the formation of a new trading range, and the risk/reward stacks up to be a buyer ~7900, using 7850 as a point to raise the white flag, given a move through that level suggests the recent run towards 8100 was a false break. All very micro and index-orientated, but important nonetheless to determine whether the general market is in a risk-on or risk-off position. For now, support held, and we saw buying come in by the close.
A soft session played out on Friday, with the ASX down 64pts/0.81% at 7971, though we did see a decent recovery from the lows (up around 45pts),perhaps a result of a major IT issue caused by global Cyber Security firm CrowdStrike that impacted many of us, including the ASX. Short CrowdStrike, long Microsoft might be the play tonight!
Tech was knocked overnight and the trend continued locally today with the rotation out of the hotter stocks, into some of the more ‘boring’ sectors, while property took a breather amidst continued strength in employment which prompted interest rate traders to increase the odds for a hike.
The ASX200 pushed towards 8100 today, extending July's gains to 3.8% - so far, trumping July's average advance of the last decade by 0.8%. While it was a strong session, some selling became obvious late in the day and it wouldn’t surprise MM to see some consolidation play out from here, after a fantastic run.
A day of consolidation for the ASX with the market getting used to the ‘8 handle’, as recent trends extended i.e. Property up ~1% and resources down ~1% with the hangover of weaker Chinese growth lingering over the sector.
The market smashed through 8000 this morning on a clear breakout of its nearly 6-month-long trading range, hitting an early high of 8037, before tapering off into the back end of the session following softer Chinese GDP. All 11 sectors were higher, though most buying was targeted in the large caps with the Small Ords finishing flat.
The market broke to new all-time highs today, and held them, underpinned by broad-based strength with 85% of the ASX 200 ending the session higher, though there was an obvious change to market leadership, with property and consumer discretionary i.e. interest rates sensitive sectors leading the line, while small caps outperformed large.
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