Yesterday saw the ASX200 fall another 52-points testing the psychological 7000 area in the early afternoon, the worm certainly hasn’t turned yet but there’s definitely some cracks forming in some global indices and local sectors.
Overnight we saw Treasurer Josh Frydenberg spend big in an effort to create another 250,000 jobs, there’s obviously no concerns around inflation or debt levels at this point in time. The booming mining sector has enabled the cash splash from revenue not envisaged by many a year ago when the pandemic dominated most conversations.
Yesterday saw the ASX200 surge to within touching distance of both its all-time high and the psychological 7200 area but this was not a typical 90-point rally because almost 30% of stocks closed down on the day.
So far in May the ASX200 has maintained both Aprils underlying strength and its polarization of gains with the banks and resources powering ahead while growth stocks and in particular the IT Sector remaining under the proverbial pump.
In the words of Led Zeppelin “the song remains the same” as yet again when the ASX200 threatens to test its all-time high the selling emerges – it’s only been 4-weeks of rotation between 7000 and 7100 but it certainly feels longer.
The ASX200 marched ever higher on Wednesday closing less than 1.5% below its all-time high, the heavy lifting was performed by the big 3 of the local index - Commonwealth Bank (CBA), CSL Ltd (CSL) and BHP Group (BHP). Again, gains weren’t broad based with under 50% of the market closing positive but its hard to argue with “higher highs” even if the advance is relatively subdued from a momentum perspective.
The ASX200 continues to oscillate between 7000 and 7100 as ongoing stock & sector rotation maintains the market equilibrium – yesterday saw only 55% of the index rally but when the resources rally strongly plus CBA / CSL post gains the index is almost guaranteed to be well supported.
The ASX200 closed marginally higher yesterday as stock & sector rotation remained the main game in town, yesterday was all about the banks and although only 30% of the index closed positive enthusiastic bank buying was enough to keep the indexes head above water.
The ASX200 kicks off the infamous May this morning having already enjoyed gains of 6.6% year-to-date with the Banking Sector leading the way following the sharp rise in global bond yields in Q1.
The ASX200 closed up 0.25% yesterday as it continued to grind higher, the speed of its ascent is reminiscent of my kids getting ready for school but there’s no signs of failure at this point in time – our preferred scenario remains a classic seasonal pullback through May & June but the bulls still remain in control at this juncture with 55% of stock rallying on Thursday, led by strength in Healthcare & IT stocks both of which prefer a lower bond yield environment.
Overnight we saw Treasurer Josh Frydenberg spend big in an effort to create another 250,000 jobs, there’s obviously no concerns around inflation or debt levels at this point in time. The booming mining sector has enabled the cash splash from revenue not envisaged by many a year ago when the pandemic dominated most conversations.
Yesterday saw the ASX200 surge to within touching distance of both its all-time high and the psychological 7200 area but this was not a typical 90-point rally because almost 30% of stocks closed down on the day.
So far in May the ASX200 has maintained both Aprils underlying strength and its polarization of gains with the banks and resources powering ahead while growth stocks and in particular the IT Sector remaining under the proverbial pump.
In the words of Led Zeppelin “the song remains the same” as yet again when the ASX200 threatens to test its all-time high the selling emerges – it’s only been 4-weeks of rotation between 7000 and 7100 but it certainly feels longer.
The ASX200 marched ever higher on Wednesday closing less than 1.5% below its all-time high, the heavy lifting was performed by the big 3 of the local index - Commonwealth Bank (CBA), CSL Ltd (CSL) and BHP Group (BHP). Again, gains weren’t broad based with under 50% of the market closing positive but its hard to argue with “higher highs” even if the advance is relatively subdued from a momentum perspective.
The ASX200 continues to oscillate between 7000 and 7100 as ongoing stock & sector rotation maintains the market equilibrium – yesterday saw only 55% of the index rally but when the resources rally strongly plus CBA / CSL post gains the index is almost guaranteed to be well supported.
The ASX200 closed marginally higher yesterday as stock & sector rotation remained the main game in town, yesterday was all about the banks and although only 30% of the index closed positive enthusiastic bank buying was enough to keep the indexes head above water.
The ASX200 kicks off the infamous May this morning having already enjoyed gains of 6.6% year-to-date with the Banking Sector leading the way following the sharp rise in global bond yields in Q1.
The ASX200 closed up 0.25% yesterday as it continued to grind higher, the speed of its ascent is reminiscent of my kids getting ready for school but there’s no signs of failure at this point in time – our preferred scenario remains a classic seasonal pullback through May & June but the bulls still remain in control at this juncture with 55% of stock rallying on Thursday, led by strength in Healthcare & IT stocks both of which prefer a lower bond yield environment.
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