Viewpoint: Bullish
The VIX (Fear Index) continues to follow our outlook for a choppy year for stocks, over the last 6-months the VIX has already tested the 40 region 4 times and the 20 region on 3 occasions. We believe this volatile range trading will be ongoing as the stock market struggles for meaningful direction, in other words it remains a time to buy weakness and sell strength.
Global stocks look poised to make fresh all-time highs with an initial target 5-10% higher, the air might be getting thin be we don’t yet believe it’s time to press the eject button just yet although we are comfortable slowly reducing equity holdings on a stock by stock basis. Technically the indicators we follow are ok if a little stretched
The MSCI is a broad global equity index that represents large and mid-cap equity performance across 23 developed markets countries. It covers approximately 85% of the free float-adjusted market capitalization in each country and MSCI world index does not offer exposure to emerging market.
Vanguard MSCI Index International Shares ETF (VGS) is an exchange traded fund incorporated in Australia.The Fund seeks to track the return of the MSCI World ex-Australia (with net dividends reinvested), in Australian dollars Index, before taking into account fees, expenses and tax.
Redbubble (RBL) distributes art products and accessories. The Company offers products such as art prints, calendars, greeting cards, laptop skins, stickers, throw pillows, spiral notebooks, mugs, wall arts, postcards, and bags. Redbubble markets its products worldwide.
US stocks were buoyed by the tech sector last night helping the S&P500 touch fresh all-time highs intra-day. We still believe the markets set for further upside but the air feels like its thinning almost daily.
A day in the sun for travel stocks with Flight Centre (FLT) +9.21%, Corporate Travel (CTD) +4.33%, Webjet (WEB) +3.75%, QANTAS (QAN) +2.51% & Sydney Airports (SYD) after The Federal Government announced a $1.2 billion tourism support package aimed at supporting local travel while international routes remain off limits.
US stocks we mainly strong overnight with the S&P500 rallying +0.65% taking it within only 2.5% of our initial 4000 target, a decent night by the likes of Apple, Amazon & Co and we could be looking at a new handle for the most widely followed index sooner rather than later.
As we touched on earlier we like the reflation trade through 2021 with another stock that could be on our radar into weakness being South32 (S32), a pullback into the $2.50 region would make this diversified miner a prime candidate for the funds generated by the sale of OZL.
BHP looks to have put a short-term top in place which coincides with our reasoning to take profit yesterday from OZ Minerals (OZL), we continue to like the “reflation trade”
