The ASX200 rallied strongly yesterday to close +1.2% with exactly 80% of the market closing up on the day, the Financials were again the standout rallying +2.5% while the resources continued to look a touch tired although not down and out at this stage. Historically the banks simply love this time of year with 3 of the “Big Four” trading ex-dividend over the coming weeks however its this exact same seasonal strong rally by the sector which often bears fruit to the “sell in May & go away” trade for the ASX , to be precise just before the end of April is when the ASX usually gets the...
While the awful humanitarian news continues to flow out of the Ukraine last week saw financial markets focus on the potential risks towards commodities markets and by definition global inflation if we see a prolonged conflict / economic stalemate. History tells us that higher inflation leads to rising interest rates which is a significant headwind for equities, and risk assets generally. Petrol prices have already gone crazy in Sydney, the local station has standard 95 at $2.35, I remember back in the middle of the Coronavirus panic it actually dipped under $1, that’s a clear read on inflation. We’ve all heard how commodity prices...
The ASX200 rallied strongly yesterday to close up 1.1% with over 80% of the market closing up on the day, if it hadn’t been for some profit taking in the energy & mining stocks it would have undoubtedly been a rare triple digit gain for the local index. Much of the strength flowed down from a pullback in oil prices following comments from the Ukraine that’s it’s open to peace talks with Russia, travel stocks were not surprisingly the standout winners e.g. Qantas (QAN) +5.8%, Webjet (WEB) +5.8% & Fight Centre (FLT) +6.6%.
The ASX200 closed up over 1% yesterday on broad-based buying which saw 85% of stocks close higher on the day but it was the banks and IT names which led the line i.e. when the “Big Four” banks advance an average of 1.5% on any day it’s unlikely the bears will be smiling. It was a mixed bag in the losers corner on Wednesday as stocks / sectors almost take it in turns to move in & out of favour, if MM is correct we should be poised to see some major reversion on the performance front that has played our over last few months:
Local stocks got off to an encouraging start yesterday, with the index actually managing to edge higher early on ignoring the 800-point plunge by the Dow but things slowly but surely unwound throughout the day as aggressive selling hit the Resources Sector, perhaps some big players agree with MM that things have simply advanced too far too fast. Tuesday ultimately saw the ASX200 close down 0.8%, back under 7000, as profit taking appeared to roll through the energy stocks and miners while at the same time a number of the classic “risk off” areas such as healthcare...
The ASX200 closed down 1% yesterday as the escalating Ukraine conflict continued to panic markets although we significantly outperformed other indices in the region due to our large resources exposure e.g. Japan, Hong Kong, India, and Korea all fell between 2% & 4%. We saw over 75% of stocks on the ASX200 decline on the day but when the influential energy and resource stocks rally strongly it undoubtedly helps shore up the local index.
March kicked off with another week dominated by news around Russia’s invasion of the Ukraine while over the weekend we saw the Chinese Government set ambitious economic growth targets suggesting another bout of aggressive fiscal stimulus in an effort to offset both rising geopolitical tensions and their painful domestic property collapse – it was only back in the 2nd half of 2021 that China Evergrande’s debt woes made scary headlines but it already seems like an almost distant memory. The ramifications of Chinas 5.5% GDP target, which is well above the IMF’s 4.8%, suggests meaningful...
The ASX200 again tested the psychological 7200 area late yesterday morning before drifting lower and ultimately surrendering over half of its morning’s gains to close up just 35-points for the day. We may be only 2-months into 2022 but MM’s view that the year would be characterised by significant volatility on both the stock and sector level is looking even more on point than even we imagined, a quick scan of some of the major winners & losers over the last 9-weeks says it all:
The ASX200 delivered a stellar performance on Wednesday by rallying 20-points in the wake of a 600-point plunge by the Dow – as we said yesterday “MM still feels that stocks want to trade higher”. We may have seen 65% of stocks decline yesterday but the stellar gains across the Energy, Gold and Resources Sectors was enough to carry the index higher. Some subscribers may have been surprised to see our sell alerts cross their screens yesterday but I remind you of a couple of famous investing quotes plus a personal favourite of one of the MM team:
Tuesday saw the ASX200 gain 0.7% but It was significantly higher at lunchtime before US futures started drifting lower reminding local investors that Eastern Europe is in the midst of a very scary war. Gains were still broad based with almost 70% of stocks closing up on the day but a reversal by the big miners reined in the markets gain even as the IT Sector surged well over 5% - with the current Ukraine crisis stock / sector rotation moves are struggling to be sustainable for more than a few days.
While the awful humanitarian news continues to flow out of the Ukraine last week saw financial markets focus on the potential risks towards commodities markets and by definition global inflation if we see a prolonged conflict / economic stalemate. History tells us that higher inflation leads to rising interest rates which is a significant headwind for equities, and risk assets generally. Petrol prices have already gone crazy in Sydney, the local station has standard 95 at $2.35, I remember back in the middle of the Coronavirus panic it actually dipped under $1, that’s a clear read on inflation. We’ve all heard how commodity prices...
The ASX200 rallied strongly yesterday to close up 1.1% with over 80% of the market closing up on the day, if it hadn’t been for some profit taking in the energy & mining stocks it would have undoubtedly been a rare triple digit gain for the local index. Much of the strength flowed down from a pullback in oil prices following comments from the Ukraine that’s it’s open to peace talks with Russia, travel stocks were not surprisingly the standout winners e.g. Qantas (QAN) +5.8%, Webjet (WEB) +5.8% & Fight Centre (FLT) +6.6%.
The ASX200 closed up over 1% yesterday on broad-based buying which saw 85% of stocks close higher on the day but it was the banks and IT names which led the line i.e. when the “Big Four” banks advance an average of 1.5% on any day it’s unlikely the bears will be smiling. It was a mixed bag in the losers corner on Wednesday as stocks / sectors almost take it in turns to move in & out of favour, if MM is correct we should be poised to see some major reversion on the performance front that has played our over last few months:
Local stocks got off to an encouraging start yesterday, with the index actually managing to edge higher early on ignoring the 800-point plunge by the Dow but things slowly but surely unwound throughout the day as aggressive selling hit the Resources Sector, perhaps some big players agree with MM that things have simply advanced too far too fast. Tuesday ultimately saw the ASX200 close down 0.8%, back under 7000, as profit taking appeared to roll through the energy stocks and miners while at the same time a number of the classic “risk off” areas such as healthcare...
The ASX200 closed down 1% yesterday as the escalating Ukraine conflict continued to panic markets although we significantly outperformed other indices in the region due to our large resources exposure e.g. Japan, Hong Kong, India, and Korea all fell between 2% & 4%. We saw over 75% of stocks on the ASX200 decline on the day but when the influential energy and resource stocks rally strongly it undoubtedly helps shore up the local index.
March kicked off with another week dominated by news around Russia’s invasion of the Ukraine while over the weekend we saw the Chinese Government set ambitious economic growth targets suggesting another bout of aggressive fiscal stimulus in an effort to offset both rising geopolitical tensions and their painful domestic property collapse – it was only back in the 2nd half of 2021 that China Evergrande’s debt woes made scary headlines but it already seems like an almost distant memory. The ramifications of Chinas 5.5% GDP target, which is well above the IMF’s 4.8%, suggests meaningful...
The ASX200 again tested the psychological 7200 area late yesterday morning before drifting lower and ultimately surrendering over half of its morning’s gains to close up just 35-points for the day. We may be only 2-months into 2022 but MM’s view that the year would be characterised by significant volatility on both the stock and sector level is looking even more on point than even we imagined, a quick scan of some of the major winners & losers over the last 9-weeks says it all:
The ASX200 delivered a stellar performance on Wednesday by rallying 20-points in the wake of a 600-point plunge by the Dow – as we said yesterday “MM still feels that stocks want to trade higher”. We may have seen 65% of stocks decline yesterday but the stellar gains across the Energy, Gold and Resources Sectors was enough to carry the index higher. Some subscribers may have been surprised to see our sell alerts cross their screens yesterday but I remind you of a couple of famous investing quotes plus a personal favourite of one of the MM team:
Tuesday saw the ASX200 gain 0.7% but It was significantly higher at lunchtime before US futures started drifting lower reminding local investors that Eastern Europe is in the midst of a very scary war. Gains were still broad based with almost 70% of stocks closing up on the day but a reversal by the big miners reined in the markets gain even as the IT Sector surged well over 5% - with the current Ukraine crisis stock / sector rotation moves are struggling to be sustainable for more than a few days.
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