Asian markets have all reacted favourably to Chinese Q4 GDP numbers with a surprise result of 8.9% y-o-y, although quarterly was 2% growth, with the S&P/ASX 200 Index leading the charge, bid up all day to finish up 1.5% or 63 points to 4210 points.
The 4200 point level of resistance has thus been broken, albeit on light volume and the next target of 4300 points must be cleared before a new bear market rally can be called (see further notes on this at bottom of post):
Other Asian markets saw similar moves, with Japan’s Nikkei 225 up 0.7% or 59 points to 8437 points, the volatile Hang Seng currently up 357 points or nearly 2% to 19369 points whilst the Shanghai Composite is also on a tear, currently up 1.5% to 2240.
The AUD was bid up, acting as the commodity proxy again, currently trading at 1.0385 against the USD, whilst WTI crude broke the $100USD barrier, up 60 cents to $100.29SD a barrel.
Gold also accelerated, up $15 an ounce straight out of the Hong Kong session, currently at $1658USD an ounce or $1597 AUD per ounce.
Movers and Shakers
Unicorns and rainbows today, with all sectors up – energy stocks stonking, up 2.7% whilst the biggest “loser” was boring utilities, only up 0.5%.
All the banks were bid up some more than others though, so let’s have a closer look: ANZ up nearly 1% but still refusing to breaking out of its bullish rectangle pattern, directionless on low volume:
The big brother of banks, the Commonwealth (CBA) was up only 0.8% and is still refusing to go over $50 a share, where a clear bullish ascending triangle is forming on the daily charts, with a breakout target of $57 (measured move) to $60 a share (the former nominal high):
National Australia Bank (NAB) was up 1.5% and remains in a holding pattern, but should follow the other big banks on any bullish move:
Whilst Westpac (WBC) was up 1.6%, still lolly gagging along at support at $20 per share:
Moving on, and Macquarie (MQG) was up 2%, back to where it was before yesterday as it too remains flat on the charts, whilst healthcare favourite Cochlear (COH) rebounded back onto trend, up 1.6% and above its short term rising support line.
Its “twin” CSL fell over 0.5%, this time clearly breaking its short term trend line and now below its long term moving average:
Telstra (TLS), saw a huge surge in volume and finished up 2% – I was wrong about that blowoff thesis. Again.
To the resources, where BHP Billiton (BHP) was up strongly, 2% but just below resistance at $37 a share, a breakout above would be very bullish for the stock, and the broader index:
Meanwhile, its “twin” Rio Tinto (RIO), was up 1.2%, gold miner Newcrest Mining (NCM) was up 1.4%, as AUD strength keeps any rises in the spot gold price steady whilst Fortescue (FMG) shot ahead nearly 4%, still forming a very short term bearish rising wedge pattern but volume is rising to negate this.
To finish out the ASX8, Woodside Petroleum (WPL) accelerated again, up nearly 2%, building on its short term uptrend although on light volume.
Finishing up with the defensive stocks Wesfarmers (WES) and Woolworths (WOW) were both up, the former doing better up 1.6% simply getting back yesterdays falls, whilst the latter was only up 0.6% and both on hold for the time being.
The major takeaway here is that the barometers of bullish activity on the ASX200 – BHP and CBA – are almost ready to pop – expect to see a significant rally if both have a bullish breakout, as the trend followers and ebullient brokers, bulls and madmen (but I repeat myself) bid up everything and anything alongside the two bellweathers.