Viewpoint: Bullish

GEM +3.5%: the childcare operator posted one of the better gains of the index today thanks to the drip feed of news ahead of next week’s federal budget.

The VIX index has started to edge higher even as US equities post fresh all-time highs, the 20 area is likely to prove a decent area of initial resistance but we are targeting another spike higher in the coming months – we’ve already seen 6 forays above 30 in the last 10-months hence we aren’t looking for anything out of ordinary.

BHP is dancing to the same tune as RIO and FMG, after correcting almost 20% MM is targeting fresh all-time highs above $50 – again a forecasted yield in excess of 5% fully franked should have the miner on many investors menu with its next dividend scheduled for early September.

Mining goliath RIO enjoys the majority of its revenue from iron ore but similar to FMG it corrected over 17% from its March high showing that it doesn’t matter how good the story is if everyone’s long a stock will struggle.

The iron Ore price continues to post fresh multi-year highs belying the many doubters who have been calling a top for the bulk commodity basically since I can remember.

MP1 has left the Australian IT sector in its wake over the last month bouncing almost 40% on the spicy combination of a solid 3rd quarter and a significant short position which was over 7% a week ago.

Apple delivered a blockbuster quarter result yesterday but as is so often the case the market looked through the now, in this case the concern was AAPL would struggle to sustain growth especially as it faces a tightening supply of chips with the worsening COVID picture through Asia not helping the production catch up.

Reece Rated New Neutral at Macquarie; PT A$19.40
Coles Group Raised to Buy at Citi; PT A$18
 St Barbara Raised to Buy at Citi; PT A$2.40