Viewpoint: Bullish
WHC has been a thorn in the side of our portfolio following its recent disappointing report but we believe the correction has gone too far simply because many investors had followed broker upgrades and gone long.
The US Fear Index (VIX) is challenging the psychological 20 area, overnight it spiked above 21 as US stocks plumbed their lows for the session painting a clear picture of the path of least resistance if equities do indeed endure a correction, our preferred scenario.
Regional bank BOQ looks poised to make fresh 2021 highs in the coming weeks but we definitely we wouldn’t be chasing strength, our preferred entry is under $9.
NAB is following in the footsteps of WBC with a just a touch less momentum, our ideal entry level is back towards $25 which might be possible post its dividend which is also due on the 13th of this month.
Heavyweight CBA is feeling a little tired on the relative front however it did pay a $1.50 fully franked dividend in February.
WBC almost shot the lights out yesterday and we feel the stock can ultimately rally much higher in 2021 but obviously a 58c fully franked dividend being paid on the 13th will slow down the appreciation short-term.
Westpac’s (WBC) strong result yesterday laid the foundations for a another strong session by the local Banking Sector – year to-date WBC and ANZ have led the way for the Big Four, both advancing ~30% compared to the ASX which is up only +6.7%.
The market move which especially caught my attention overnight was in silver & gold with the former closing up almost 4%, at fresh 10-week highs, following only a small pullback by the $US.
Australia’s main telco Telstra (TLS) enjoyed a strong session yesterday rallying almost 3% on a day when over 65% of stocks declined.
NSR +2.99%: I had a chat with Livewire Markets today about M&A ticking up which is a function of low rates, excess liquidity and cashed up private equity, three key ingredients.
