Last week’s title on Monday was “Here comes the bounce”, things were looking on track come mid-week with the ASX200 up over 200-points but increasing recession fears were enough to reverse all of the gains plus a little more leaving the index down -0.7% come Friday’s close. Market volatility remains extremely high across a number of markets, not just financials, although interesting the stocks and sectors aren’t necessarily reacting as would often be expected:
The ASX200 bode farewell to the financial year in the same bearish manner that’s dominated the last 2-months taking its decline for the tax rule-off period to -10.2%. Losses on the disappointing Thursday compounded through the day with the index closing down 2%, only 10% of the main board managed to close in positive territory but the fall wasn’t caused by tax-loss selling as many might discuss this morning, it was all about aggressive falls in global risk assets during our time zone which flowed into the ASX:
The ASX200 struggled throughout yesterday finally closing down -0.9% although it did recover a third of the morning’s losses through a relatively unconvincing afternoon bounce. Considering over 80% of the market fell it wasn’t a bad result aided by a relatively steady Banking Sector. Under the hood, it was another tough session for tech, real estate and healthcare stocks, three sectors that keep looking for a low with very little success. Overall yesterday was a quiet day bar the sharp drop on the opening, EOFY portfolio tweaks feel like they’ve already been actioned i.e. investors have become much smarter over recent years with regards to tax-loss selling now commencing much earlier.
The ASX200 enjoyed another strong day on Tuesday rallying +0.9%, although over 40% of the main board closed down on the day – it was a stellar performance from the Resources Sector that dragged the index higher e.g. BHP Group (BHP) +4.3%, Fortescue Metals (FMG) +3.8% and South32 (S32) +3.7%. One of the main themes over the last 6-months has been the huge gyrations across the relative stock/sector performances which definitely remains in play today:
The ASX200 enjoyed an explosive start to the week with over 80% of the main board advancing led by the banks, energy and tech stocks, if we take the gold sector out of the mix it was almost a clean sweep for the bulls. There are only 3 trading days left of this financial year hence the easiest call for the next few sessions is we should expect plenty of volatility under the hood of the market, in both directions. Second-guessing which stocks will surge or plunge is akin to a game of two-up hence we would rather step back and see if anything becomes too cheap or expensive and then we can act accordingly i.e. don’t be surprised if you receive another trading alert over the coming week.
Equities are struggling as free money is withdrawn from the financial system and many stocks appear to be going on sale, recession led market corrections have only occurred roughly every 6-years since WW2 and while a little more downside wouldn’t surprise MM considering how much economic stimulus supported stocks through the GFC and COVID these should be exciting times for the informed investors not a time to panic – remember US stocks have already endured over 75% of their average recession led correction.
The ASX200 edged higher on Thursday as the broad market managed to successfully offset pockets of aggressive selling in the Resources Sector courtesy of some very tough commentary from Fed Chair Powell around the potential for a recession in the year ahead. The commodities markets have certainly been paying attention with both crude oil and copper plumbing multi-week lows over recent days:
The ASX200 slipped back into its recent bad habits yesterday with investors prepared to chase a few bargains into weakness but unfortunately, there remains a clear absence of buyers into any meaningful degree of strength – it appears we need some improvement on the macro level before some real confidence returns to stocks but this can often occur when least expected. However, through Wednesday’s session, it was a sharp decline by the S&P500 futures that changed the initial positive sentiment for the local market as recession fears intensified dragging down influential commodities like crude oil and copper, both were down well over...
The ASX200 opened strongly on Tuesday as anticipated but it was pleasant change compared to the rest of June that we managed to hold onto these gains although a surging S&P500 Futures market certainly helped the sentiment. The main Australian bourse ended the day up +1.4% with over 70% of the main board closing in positive territory. The Financials & Resources Sectors combined to lead the gains with many energy stocks reversing much of Mondays weakness, although a number of the miners struggled to maintain their gains through the afternoon implying they could experience further downside into July e.g. yesterday saw iron ore experience...
The ASX200 came under renewed pressure on Monday only from a different sector this time as the miners were smacked in line with their underlying commodities e.g. iron ore plunged 11% at one stage yesterday taking Fortescue Metals (FMG) down -8.6% in sympathy. Over 55% of the main board’s stocks rallied over the day but when the heavyweight resource stocks fall ~5% it’s always going to be tough going for the broad market. It feels like different market pockets/sectors are taking it in turns to attract sellers’ attention almost like dominos falling one at a time:
The ASX200 bode farewell to the financial year in the same bearish manner that’s dominated the last 2-months taking its decline for the tax rule-off period to -10.2%. Losses on the disappointing Thursday compounded through the day with the index closing down 2%, only 10% of the main board managed to close in positive territory but the fall wasn’t caused by tax-loss selling as many might discuss this morning, it was all about aggressive falls in global risk assets during our time zone which flowed into the ASX:
The ASX200 struggled throughout yesterday finally closing down -0.9% although it did recover a third of the morning’s losses through a relatively unconvincing afternoon bounce. Considering over 80% of the market fell it wasn’t a bad result aided by a relatively steady Banking Sector. Under the hood, it was another tough session for tech, real estate and healthcare stocks, three sectors that keep looking for a low with very little success. Overall yesterday was a quiet day bar the sharp drop on the opening, EOFY portfolio tweaks feel like they’ve already been actioned i.e. investors have become much smarter over recent years with regards to tax-loss selling now commencing much earlier.
The ASX200 enjoyed another strong day on Tuesday rallying +0.9%, although over 40% of the main board closed down on the day – it was a stellar performance from the Resources Sector that dragged the index higher e.g. BHP Group (BHP) +4.3%, Fortescue Metals (FMG) +3.8% and South32 (S32) +3.7%. One of the main themes over the last 6-months has been the huge gyrations across the relative stock/sector performances which definitely remains in play today:
The ASX200 enjoyed an explosive start to the week with over 80% of the main board advancing led by the banks, energy and tech stocks, if we take the gold sector out of the mix it was almost a clean sweep for the bulls. There are only 3 trading days left of this financial year hence the easiest call for the next few sessions is we should expect plenty of volatility under the hood of the market, in both directions. Second-guessing which stocks will surge or plunge is akin to a game of two-up hence we would rather step back and see if anything becomes too cheap or expensive and then we can act accordingly i.e. don’t be surprised if you receive another trading alert over the coming week.
Equities are struggling as free money is withdrawn from the financial system and many stocks appear to be going on sale, recession led market corrections have only occurred roughly every 6-years since WW2 and while a little more downside wouldn’t surprise MM considering how much economic stimulus supported stocks through the GFC and COVID these should be exciting times for the informed investors not a time to panic – remember US stocks have already endured over 75% of their average recession led correction.
The ASX200 edged higher on Thursday as the broad market managed to successfully offset pockets of aggressive selling in the Resources Sector courtesy of some very tough commentary from Fed Chair Powell around the potential for a recession in the year ahead. The commodities markets have certainly been paying attention with both crude oil and copper plumbing multi-week lows over recent days:
The ASX200 slipped back into its recent bad habits yesterday with investors prepared to chase a few bargains into weakness but unfortunately, there remains a clear absence of buyers into any meaningful degree of strength – it appears we need some improvement on the macro level before some real confidence returns to stocks but this can often occur when least expected. However, through Wednesday’s session, it was a sharp decline by the S&P500 futures that changed the initial positive sentiment for the local market as recession fears intensified dragging down influential commodities like crude oil and copper, both were down well over...
The ASX200 opened strongly on Tuesday as anticipated but it was pleasant change compared to the rest of June that we managed to hold onto these gains although a surging S&P500 Futures market certainly helped the sentiment. The main Australian bourse ended the day up +1.4% with over 70% of the main board closing in positive territory. The Financials & Resources Sectors combined to lead the gains with many energy stocks reversing much of Mondays weakness, although a number of the miners struggled to maintain their gains through the afternoon implying they could experience further downside into July e.g. yesterday saw iron ore experience...
The ASX200 came under renewed pressure on Monday only from a different sector this time as the miners were smacked in line with their underlying commodities e.g. iron ore plunged 11% at one stage yesterday taking Fortescue Metals (FMG) down -8.6% in sympathy. Over 55% of the main board’s stocks rallied over the day but when the heavyweight resource stocks fall ~5% it’s always going to be tough going for the broad market. It feels like different market pockets/sectors are taking it in turns to attract sellers’ attention almost like dominos falling one at a time:
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