The ASX200 again recovered from early losses yesterday to close up 12-points with a 4.5% advance by the Energy Sector the clear standout, coincidentally the day after MM described it as “the cheap pocket of the market” – we remain overweight and bullish oil stocks which have fallen in 2021, even while crude oil has rallied almost 50%. The miners played a supporting role which caught our attention as iron ore plumbed multi-month lows, on balance the reflation trade is slowly gathering momentum.
The ASX200 enjoyed another classic 2021 day to kick off the week, it may not have managed to close on its highs but the local index still recovered from early weakness to close up 0.25%. The number of winners and losers was pretty evenly matched but the aggressive buying which rolled through much of the Resources Sector was more than enough to offset loses elsewhere e.g. OZ Minerals (OZL) +4.2% and Pilbara Minerals (PLS) +7.3%. MM remains both bullish and overweight the Resources Sector but following our purchase of Alumina (AWC) yesterday it’s probably now time to sit back...
The ASX200 and global equities have rallied strongly since their early 2020 COVID meltdown with virtually all major indices posting fresh all-time highs in recent weeks but there might be a new canary in the coal mine, the main question being will it be around for just a few weeks, or much longer. Firstly lets reiterate 3 of the main reasons stocks have “wobbled” in recent sessions:
The ASX200 was clobbered yesterday falling -1.9% plumbing levels not seen since late July as broad-based selling washed through our market, noticeably the “dip” buyers failed to surface as we broke down out of the last few weeks trading range. Only 3% of the main market managed to close up on a day when all pockets of the market suffered, almost 15% of the market retreating by -4%, or more.
The ASX200 continues to rotate around the 7500 area, give it another 9-more days and it will perfectly mirror the 201-point pullback in June / July from both a time & price perspective. Wednesday was a quiet day even while it delivered another recovery from early weakness, we finally closed down -0.2% with less than 30% of the main board managing to close in positive territory. Interestingly Australian stocks still haven’t experienced a 5% pullback in 2021 yet Bitcoin ($US) managed to plunge -15% in just 2-hours on Tuesday illustrating perfectly...
The ASX200 closed marginally higher on Tuesday as it continued to hover around the 7500 level, the number of winners & losers almost exactly matched with only 1% of stocks moving by over 5% i.e. there was little on the stock level to excite investors following the Labor Day holiday in the US. However on the macro / news level there was a couple of interesting events catching our attention:
The ASX200 again rallied strongly after briefly dipping below the 7450 level – I’m almost getting bored of saying “buy the dip” but yet again the local market found a low just as Gladys delivered the NSW’s COVID statistics before enjoying solid buying throughout the day to reverse early loses and close marginally higher, a +1.2% intraday turnaround. Very similar to the trend in home schoolings, the low is certainly formed in the AM before a recovery plays out in the PM! Yesterday it was the unusual combination of IT, Gold and Reopening stocks led...
The ASX200 is a few days into what’s been a very quiet start to September, over the last decade August & September have combined to fall an average of -3.8% but last month’s +1.9% advance should have already warned statisticians that there’s nothing normal about the strength of the post COVID stock market rally – at MM we’re sticking with the trend of “Buy the dips but only fade the “pops” to new highs”. A quick comparison to the current rally with the one after the GFC illustrates...
The ASX200 slipped -0.55% yesterday but once we take out the huge dividends delivered to happy investors the market actually hardly moved e.g. BHP Group (BHP) $2.74, CSL Ltd (CSL) $1.64, Woolworths (WOW) 55c and Perpetual (PPT) 96c. Importantly these funds will drop into shareholders bank accounts around the end of September / start of October providing yet another tailwind for this already resilient market i.e. a significant portion of investors simply reinvest their dividends back into the market...
The ASX200 continued to follow the 2021 playbook yesterday by falling fairly hard into a 10.30 am low prior to grinding higher throughout the day, it finally closed 0.9% above the intra-day low, down just -0.1% i.e. “buy the dip” still reins supreme. Winners actually marginally trumped the losers with the banks in particular catching my eye on the upside with National Bank (NAB) popping +2.2% to make fresh post COVID highs. Septembers off and running and if the ASX200 dances to the same rhythm as it has since May we should be testing ~7700 in the coming weeks.
The ASX200 enjoyed another classic 2021 day to kick off the week, it may not have managed to close on its highs but the local index still recovered from early weakness to close up 0.25%. The number of winners and losers was pretty evenly matched but the aggressive buying which rolled through much of the Resources Sector was more than enough to offset loses elsewhere e.g. OZ Minerals (OZL) +4.2% and Pilbara Minerals (PLS) +7.3%. MM remains both bullish and overweight the Resources Sector but following our purchase of Alumina (AWC) yesterday it’s probably now time to sit back...
The ASX200 and global equities have rallied strongly since their early 2020 COVID meltdown with virtually all major indices posting fresh all-time highs in recent weeks but there might be a new canary in the coal mine, the main question being will it be around for just a few weeks, or much longer. Firstly lets reiterate 3 of the main reasons stocks have “wobbled” in recent sessions:
The ASX200 was clobbered yesterday falling -1.9% plumbing levels not seen since late July as broad-based selling washed through our market, noticeably the “dip” buyers failed to surface as we broke down out of the last few weeks trading range. Only 3% of the main market managed to close up on a day when all pockets of the market suffered, almost 15% of the market retreating by -4%, or more.
The ASX200 continues to rotate around the 7500 area, give it another 9-more days and it will perfectly mirror the 201-point pullback in June / July from both a time & price perspective. Wednesday was a quiet day even while it delivered another recovery from early weakness, we finally closed down -0.2% with less than 30% of the main board managing to close in positive territory. Interestingly Australian stocks still haven’t experienced a 5% pullback in 2021 yet Bitcoin ($US) managed to plunge -15% in just 2-hours on Tuesday illustrating perfectly...
The ASX200 closed marginally higher on Tuesday as it continued to hover around the 7500 level, the number of winners & losers almost exactly matched with only 1% of stocks moving by over 5% i.e. there was little on the stock level to excite investors following the Labor Day holiday in the US. However on the macro / news level there was a couple of interesting events catching our attention:
The ASX200 again rallied strongly after briefly dipping below the 7450 level – I’m almost getting bored of saying “buy the dip” but yet again the local market found a low just as Gladys delivered the NSW’s COVID statistics before enjoying solid buying throughout the day to reverse early loses and close marginally higher, a +1.2% intraday turnaround. Very similar to the trend in home schoolings, the low is certainly formed in the AM before a recovery plays out in the PM! Yesterday it was the unusual combination of IT, Gold and Reopening stocks led...
The ASX200 is a few days into what’s been a very quiet start to September, over the last decade August & September have combined to fall an average of -3.8% but last month’s +1.9% advance should have already warned statisticians that there’s nothing normal about the strength of the post COVID stock market rally – at MM we’re sticking with the trend of “Buy the dips but only fade the “pops” to new highs”. A quick comparison to the current rally with the one after the GFC illustrates...
The ASX200 slipped -0.55% yesterday but once we take out the huge dividends delivered to happy investors the market actually hardly moved e.g. BHP Group (BHP) $2.74, CSL Ltd (CSL) $1.64, Woolworths (WOW) 55c and Perpetual (PPT) 96c. Importantly these funds will drop into shareholders bank accounts around the end of September / start of October providing yet another tailwind for this already resilient market i.e. a significant portion of investors simply reinvest their dividends back into the market...
The ASX200 continued to follow the 2021 playbook yesterday by falling fairly hard into a 10.30 am low prior to grinding higher throughout the day, it finally closed 0.9% above the intra-day low, down just -0.1% i.e. “buy the dip” still reins supreme. Winners actually marginally trumped the losers with the banks in particular catching my eye on the upside with National Bank (NAB) popping +2.2% to make fresh post COVID highs. Septembers off and running and if the ASX200 dances to the same rhythm as it has since May we should be testing ~7700 in the coming weeks.
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