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Weekend report

Four sectors in our sights

The stock / sector rotation in the both US & Australian markets remains at extreme levels, we continue believe the way to add value (alpha) in the current market is through switching as opposed to simply increasing / decreasing cash levels, or market exposure. However investors should always remember all good things do eventually come to an end, we can see ourselves increase cash holdings across the portfolios at some stage before Christmas, ideally the NASDAQ shown below will regain its “mojo” and test / break its all-time high in October following its classic 14% washout of the “weak longs” and increasing number of momentum traders.
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NAB
MM is now bullish US tech in the weeks ahead, our current target is over 10% higher.
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MM remains bullish equities into October.
CBA
MM is bullish the banks at current levels.
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CSL
MM is neutral CSL around $300. We would become more bullish around $250
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