The ASX200 again tried to push higher early on Tuesday only to drift through the afternoon, this style of price action might often concern us but the local market just feels a little stretched this month, we still anticipate fresh highs into November / Christmas. All the action on Tuesday was on the stock / sector level as lithium stocks rallied while gold stocks gave back some of their recent gains but overall it was a quiet day as we see slowly & quietly say goodbye to October.
The ASX200 kicked off the last week of October in solid form rallying to new monthly highs in the morning before finally managing to close up 0.3% even as more stocks actually closed in negative territory. The resources names, led by the energy component, were the best on ground while the tech sector slipped lower but overall it was another quiet session as investors appear reticent to buy into strength, they must have read our notes!
Global stocks continue to encounter headwinds from a number of different areas and last week inflation was the standout raising its head across a number of countries, yet most indices continued to rally and are still hovering around their respective all-time highs. Also we’re approaching the seasonally very strong period for stocks which adds to any optimism. At this stage the liquidity driven stock market rally continues to win arm wrestles against all challengers!
The ASX200 continues to struggle to advance much above 7400 as it pays respect to the historical statistics in play i.e. the bulls may have to wait until the Melbourne Cup runners are off and running before we can see a sustained challenge on 7500, and above. Yesterday saw the index drift from its lunchtime highs in sympathy with US futures, the COVID re-opening names experienced further profit taking while the Real Estate Sector was the standout top performer.
The ASX200 rallied over 0.5% yesterday although it was up over 1% moving into lunch before we saw some weakness creep into the Resources & Energy Sectors. However it was still a solid session for the local index which enjoyed over 65% of stocks on the main board advance with a few noticeably accelerating north i.e. 6 stocks rallied by over 5% while only 1 culprit retreated by the same degree.
The ASX200 surrendered early gains on Tuesday to end the day marginally lower as some of the large miners weighed on the index e.g. BHP Group (BHP) -2% and RIO Tinto (RIO) -3.25%. The RBA released its “minutes” at 11.30am on Tuesday, the unveiling of Philip Lowe & Co’s thoughts at their most recent policy meeting 2-weeks ago took some of the puff out of the hawks sails, at least for a few days, which in the process led to some selling in the banks and resources i.e. the largest sectors in the ASX:
The ASX200 edged higher yesterday even as more stocks retreated under the weight of rising bond yields and nervous US futures – more on the former later. The local market experienced pronounced sector rotation throughout the day as bond markets heavily influenced investors, I have seen a few overnight moves akin to this in 2021 but arguably none as dramatic intra-day:
Equity markets are often referred to as weighing machine since a famous investor from Omaha, Nebraska coined the phrase almost 50-years ago way back during the awful bear market of 1973-74. In our opinion the current market uncertainty and sector rotation is being caused by investors continually re-evaluating whether the strong post COVID economic recovery is going to be enough to offset the looming headwind of rising interest rates plus the increasing political inconsistencies from...
The ASX200 closed up 0.5% on Thursday although it struggled after 3pm giving back almost half of its gains as fairly heavy selling rolled through the SPI futures. Investors still enjoyed over 70% of the main index close up on the day but some weakness in the banks was enough to drag the market back towards 7300, historically the banks are strong from now through until November with ANZ, NAB and Westpac all trading ex-dividend in the first half of next month but after such a stellar advance over the last year it may be too much to ask for standout ongoing strength...
The ASX200 closed yesterday at the same level it reached in early June i.e. more than 3-months later the market remains unchanged albeit after a failed foray above 7600 in August. We’ve witnessed plenty of sector rotation in the last quarter even if the underlying index has failed to make any discernible headway, the choppy swings between various stocks and sectors has been consistent in its inconsistency but over the months there have been a couple of standouts:
The ASX200 kicked off the last week of October in solid form rallying to new monthly highs in the morning before finally managing to close up 0.3% even as more stocks actually closed in negative territory. The resources names, led by the energy component, were the best on ground while the tech sector slipped lower but overall it was another quiet session as investors appear reticent to buy into strength, they must have read our notes!
Global stocks continue to encounter headwinds from a number of different areas and last week inflation was the standout raising its head across a number of countries, yet most indices continued to rally and are still hovering around their respective all-time highs. Also we’re approaching the seasonally very strong period for stocks which adds to any optimism. At this stage the liquidity driven stock market rally continues to win arm wrestles against all challengers!
The ASX200 continues to struggle to advance much above 7400 as it pays respect to the historical statistics in play i.e. the bulls may have to wait until the Melbourne Cup runners are off and running before we can see a sustained challenge on 7500, and above. Yesterday saw the index drift from its lunchtime highs in sympathy with US futures, the COVID re-opening names experienced further profit taking while the Real Estate Sector was the standout top performer.
The ASX200 rallied over 0.5% yesterday although it was up over 1% moving into lunch before we saw some weakness creep into the Resources & Energy Sectors. However it was still a solid session for the local index which enjoyed over 65% of stocks on the main board advance with a few noticeably accelerating north i.e. 6 stocks rallied by over 5% while only 1 culprit retreated by the same degree.
The ASX200 surrendered early gains on Tuesday to end the day marginally lower as some of the large miners weighed on the index e.g. BHP Group (BHP) -2% and RIO Tinto (RIO) -3.25%. The RBA released its “minutes” at 11.30am on Tuesday, the unveiling of Philip Lowe & Co’s thoughts at their most recent policy meeting 2-weeks ago took some of the puff out of the hawks sails, at least for a few days, which in the process led to some selling in the banks and resources i.e. the largest sectors in the ASX:
The ASX200 edged higher yesterday even as more stocks retreated under the weight of rising bond yields and nervous US futures – more on the former later. The local market experienced pronounced sector rotation throughout the day as bond markets heavily influenced investors, I have seen a few overnight moves akin to this in 2021 but arguably none as dramatic intra-day:
Equity markets are often referred to as weighing machine since a famous investor from Omaha, Nebraska coined the phrase almost 50-years ago way back during the awful bear market of 1973-74. In our opinion the current market uncertainty and sector rotation is being caused by investors continually re-evaluating whether the strong post COVID economic recovery is going to be enough to offset the looming headwind of rising interest rates plus the increasing political inconsistencies from...
The ASX200 closed up 0.5% on Thursday although it struggled after 3pm giving back almost half of its gains as fairly heavy selling rolled through the SPI futures. Investors still enjoyed over 70% of the main index close up on the day but some weakness in the banks was enough to drag the market back towards 7300, historically the banks are strong from now through until November with ANZ, NAB and Westpac all trading ex-dividend in the first half of next month but after such a stellar advance over the last year it may be too much to ask for standout ongoing strength...
The ASX200 closed yesterday at the same level it reached in early June i.e. more than 3-months later the market remains unchanged albeit after a failed foray above 7600 in August. We’ve witnessed plenty of sector rotation in the last quarter even if the underlying index has failed to make any discernible headway, the choppy swings between various stocks and sectors has been consistent in its inconsistency but over the months there have been a couple of standouts:
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