Viewpoint: Bullish
Another stock in the materials space to fall ~4% yesterday was recycling business SGM which is now already 10% below last week’s high, the risk / reward will start to look attractive around the $15 area but a deeper correction wouldn’t surprise in today’s volatile environment, especially if the $US bounces as it did overnight following the Fed minutes.
ETFS FANG+ ETF (FANG) is an ETF incorporated in Australia that aims to provide an investment return that tracks the performance of the Nasdaq Global ex-Australia Gold Miners Hedged AUD Index (the “Index”), before taking into account fees and expenses.
APX +17.44%: Rallied today after settling some concerns through a business plan update today. The artificial intelligence business announced it would be splitting itself into 4 segments – Global, Enterprise, China and Government – in an effort to be more transparent about its exposures, and more targeted in their approach.
We turned short-term bearish subscription streaming business NFLX back in April however back under $US450 we believe the risk / reward will return for the buyers i.e. MM is considering accumulating NFLX under $US450.
The US Fear Index (VIX) is looking more confident above the psychological 20 area, overnight it closed above 21 as US stocks reversed early gains closing into fresh session lows.
No change, bond yields continue to tread water after strong 2021 gains our preference is they will ultimately continue to drift lower and we actually feel they may take out the lows of April creating a washout move to the downside – if this does unfold MM will look to gain exposure through an ETF targeting rising yields through 2022.
JHX surrendered 4.5% of its recent strong gains after posting its 4th quarter update, on the day it appeared a classic case of a good announcement but the bullish market expected more.
ST1 -1.45%: the small telco was out with a trading update this morning which looked ahead of expectations despite the stock falling on the day.
Spirit Technology (ST1) provides telecommunication services. The Company offers voice, fibre broadband, internet, and business services. Spirit Technology Solutions operates in Australia.
Precious metals rallied strongly overnight with gold up +1.6% and silver +2.8%, a great performance considering the $US only dipped -0.1% remaining above the psychological 90 level.
