SMALL CAP PORTFOLIO Let's be extra careful out there today! SUMMARY There is something rotten…
Wall Street finished in the red overnight after a US treasury auction sent bond yields higher, and CPI data came in hotter than expected. September monthly headline CPI came at 0.4%, higher than consensus of 0.3%, down from 0.6% in August. Headline YonY remained unchanged at 3.7%, although higher than expectations of 3.6%.
Turnover day – Not sure you take much interest in the technical signals today as the four-day trend comes to an end. Not a lot of technical signals anyway as the market bounce drops away. This is the ASX 200 – will the new trend end? Likely.
Market surviving the CPI number overnight – all is not lost although the rally has certainly started to doubt itself.
DMP is enjoying a purple patch, up 10% in the past five days. Citi upgraded the company on Wednesday to Buy, noting that an inflection point has been reached and improvement in key financial metrics are expected.
All Change – We are back on interest rate watch after the CPI number. Interest rate sensitive rally to end. US Results season starts tonight. Usually, a positive. Investment banks up first. DMP – Some broker upgrades. SGR – If you can swallow your ethics. BOQ after dropping 7% on results. Interesting moves in our industry.
BOQ released full year results on Wednesday and was received poorly by the market to say the least. Down 7% (a lot for a bank) on the news, followed by an interesting bounce back yesterday, up 4%.
US equities finished higher overnight after a choppy session following the release of FOMC meeting…
SMALL CAP PORTFOLIO 3.00pm Updates Nothing done today. Selected lithium stocks recovering from oversold levels.…
Buy signals on the All Ordinaries, ASX 200, S&P 500 and Nasdaq are now 4 days old. There are now MACD buy signals as well. Telstra (TLS) weekly buy signal. Again. Not often traded by Australians – but there’s a buy signal on SQ2. Qantas (QAN), anyone?. Very early short-term buy signal after dropping from 670c to 490c over the Qatar debacle (not their fault).