This weeks summed up perfectly both June & July for the ASX200, we kicked-off on Monday with one of the worst days in months leading to a test of 7200 on Tuesday morning, but by the close on Thursday these losses were well and truly in the rear view mirror as local stocks closed within only 0.3% of their all-time high, buy the dips is clearly still the winning formula.
The ASX200 enjoyed a solid Wednesday with the index closing up +0.8%, the banks and resources led the gains as the “reflation trade” enjoyed a day back in the sun. I’m trying extremely hard not to make the reports monotonous as we continue to witness an ongoing “tug-of-war” between...
The ASX200 again managed to hold onto its 7200 support in admirable fashion yesterday even in the face of a 725-point plunge by the Dow, the markets “buy the dips” attitude is undoubtedly working for now. However while MM is part of this core view that the bull market is alive and well our preferred scenario is we get a short sharp washout down ~4% to catch out the complacent traders / buyers because...
The ASX200 endured a tough start to this week finally closing down 62-points although it was a fair bit worse mid-morning with the index nudging the psychological negative 100-points level at its worst. Losses were relatively broad based with 76% of stocks closing in the red but it was still encouraging to see the market grind higher after its initial savage sell off. A few points caught my attention which dovetails nicely with how MM sees equities through July and August:
The ASX200 continues to trade sideways in the face of a deteriorating COVID picture although it hasn’t actually been going anywhere since early June, well before the current Delta wave raised its head on our fair shores. Sydney registered its first case of this outbreak only 30-days ago on the 16th of June, it already feels a lot longer in the Gerrish household! As the the State and Federal Governments again dig deep to support individuals and businesses unable to work due to lockdowns optimism towards the speed of the economic recovery has waned but on the stock market level it’s only produced some rotation between sectors as opposed to core market selling.
The ASX200 slipped lower yesterday, as we come into Friday “the song remains the same” with the local market very happy to simply rotate around the 7300 area whatever the macro / market news that crosses our screens. In what was a quiet session during an even quieter few weeks for stocks a few points did catch my attention:
The ASX200 enjoyed a solid Wednesday in the face of some negative leads as US stocks drifted lower and the local BNPL space was clobbered courtesy of Apple (AAPL US) – more on this later. Under the hood we saw ongoing mean reversion with the likes of Crown (CWN) and HUB24 Ltd (HUB), who both reside in the MM Flagship Growth Portfolio bounce strongly after struggling over the last few weeks i.e. pretty much a continuance of the trend across recent months.
The ASX200 again succumb to the almost magnetic pull of the 7300 level, the index has been rotating around this area within +/- 100-points for over a month but from my perspective it feels even longer! Yesterday saw the market forgo early strong gains to close basically unchanged with the Banking, Energy and Real Estate Sectors weighing on the ASX but the selling was very restrained with only 1 stock falling by over 3% i.e. no change, there are buyers of weakness and sellers of strength but neither appears particularly committed to their cause.
Stocks kicked off the week on a very positive footing following the strong gains in Europe and the US on Friday but it was the sterling performance from the large cap miners that caught my attention e.g. BHP Group (BHP) and Fortescue Metals (FMG) both closed up over +3%. MM has been looking for some weakness in the Resources Sector to increase our exposure but its currently proving to be a long wait!
The ASX200 continues to bounce around between 7200 and 7400 which considering the economic and social backdrop is an impressive performance in my opinion. The local index has rallied ~28% over the last 9-months yet the very real prospect of a damaging extended lockdown in NSW is being shrugged off by stocks, although both bond and currency markets are taking more notice:
The ASX200 enjoyed a solid Wednesday with the index closing up +0.8%, the banks and resources led the gains as the “reflation trade” enjoyed a day back in the sun. I’m trying extremely hard not to make the reports monotonous as we continue to witness an ongoing “tug-of-war” between...
The ASX200 again managed to hold onto its 7200 support in admirable fashion yesterday even in the face of a 725-point plunge by the Dow, the markets “buy the dips” attitude is undoubtedly working for now. However while MM is part of this core view that the bull market is alive and well our preferred scenario is we get a short sharp washout down ~4% to catch out the complacent traders / buyers because...
The ASX200 endured a tough start to this week finally closing down 62-points although it was a fair bit worse mid-morning with the index nudging the psychological negative 100-points level at its worst. Losses were relatively broad based with 76% of stocks closing in the red but it was still encouraging to see the market grind higher after its initial savage sell off. A few points caught my attention which dovetails nicely with how MM sees equities through July and August:
The ASX200 continues to trade sideways in the face of a deteriorating COVID picture although it hasn’t actually been going anywhere since early June, well before the current Delta wave raised its head on our fair shores. Sydney registered its first case of this outbreak only 30-days ago on the 16th of June, it already feels a lot longer in the Gerrish household! As the the State and Federal Governments again dig deep to support individuals and businesses unable to work due to lockdowns optimism towards the speed of the economic recovery has waned but on the stock market level it’s only produced some rotation between sectors as opposed to core market selling.
The ASX200 slipped lower yesterday, as we come into Friday “the song remains the same” with the local market very happy to simply rotate around the 7300 area whatever the macro / market news that crosses our screens. In what was a quiet session during an even quieter few weeks for stocks a few points did catch my attention:
The ASX200 enjoyed a solid Wednesday in the face of some negative leads as US stocks drifted lower and the local BNPL space was clobbered courtesy of Apple (AAPL US) – more on this later. Under the hood we saw ongoing mean reversion with the likes of Crown (CWN) and HUB24 Ltd (HUB), who both reside in the MM Flagship Growth Portfolio bounce strongly after struggling over the last few weeks i.e. pretty much a continuance of the trend across recent months.
The ASX200 again succumb to the almost magnetic pull of the 7300 level, the index has been rotating around this area within +/- 100-points for over a month but from my perspective it feels even longer! Yesterday saw the market forgo early strong gains to close basically unchanged with the Banking, Energy and Real Estate Sectors weighing on the ASX but the selling was very restrained with only 1 stock falling by over 3% i.e. no change, there are buyers of weakness and sellers of strength but neither appears particularly committed to their cause.
Stocks kicked off the week on a very positive footing following the strong gains in Europe and the US on Friday but it was the sterling performance from the large cap miners that caught my attention e.g. BHP Group (BHP) and Fortescue Metals (FMG) both closed up over +3%. MM has been looking for some weakness in the Resources Sector to increase our exposure but its currently proving to be a long wait!
The ASX200 continues to bounce around between 7200 and 7400 which considering the economic and social backdrop is an impressive performance in my opinion. The local index has rallied ~28% over the last 9-months yet the very real prospect of a damaging extended lockdown in NSW is being shrugged off by stocks, although both bond and currency markets are taking more notice:
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